Kara Swisher

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Conduit Dumps Google Search for Microsoft's Bing

In an interesting move in the search space, Conduit–a fast-growing start-up that helps publishers make and distribute apps using Web browser toolbars–has entered a strategic partnership with Microsoft’s Bing search service.

In doing so, it is leaving its existing search deal with Google and will instead offer Bing to its network of 260,000 publishers and 200 million users.

It’s a solid win for Bing, which has more incentive to draw customers of its search products and services away from Google.

And every little bit helps as Microsoft strives to put even a chink in the overwhelming dominance of the search giant.

In a blog post today, Conduit said, in part (the rest is below):

“As of January 1st, 2011, our publishers will provide the full Bing experience to their users. Users in the Conduit Network will get all the features unique to Bing, decision tools that go beyond search, and an excellent browsing experience that is constantly evolving.”

More significantly, under the terms of the deal, Web publishers will be able to distribute apps directly in the organic search results on Bing.

Conduit President Adam Boyden said in an interview yesterday that the deal was struck to offer a better user experience for its customers with search, as well as the “long-term potential for app innovation with Microsoft.”

Conduit, which was founded in 2005 and has 190 employees, is profitable, Boyden said, from customers such as Groupon, eBay, Travelocity and Major League Baseball.

The San Mateo, Calif., company has raised close to $10 million, mostly from Benchmark Capital.

Of the shift to Bing, Boyden added, “There is more strategic potential for us with Bing,” he said. “And the same is true for them.”

Here is a blog post from Conduit today on the changeover, from founder and CEO Ronen Shilo and titled “Bing–It has a nice ring to it”:

Six years ago a small group of us founded Conduit with our own money and a vision of empowering the smaller Web publishers out there by giving them the tools to change the way they interact with their users. Many people were skeptical but we believed that we could truly make a difference.

Conduit redefined the toolbar, not as a search vehicle, but as a powerful engagement tool–the Community Toolbar. With so many publishers understanding this potential, Conduit inadvertently established a footprint for itself within the search market, comparable only to major classic search players.

Six years, 260,000 publishers, and 200 million users later, Conduit has proven to be one of the companies making a difference on the Web. Our product offering has greatly evolved and now includes apps, notifications, analytics and a marketplace. In the near future we will be creating new app distribution opportunities for our network of publishers, hastening the fulfillment of Conduit’s ambition to become an industry standard, to be used by all content publishers and available across all platforms.

Today I’d like to announce the next step in our journey–we have entered into a partnership with Microsoft which we believe will significantly improve our offering to publishers, accelerating the growth of Conduit’s massive network. Both companies are highly driven by improving the user experience, and as such, see a strong alignment in our long-term strategies and are looking forward to a mutually successful partnership.

As of January 1st, 2011, our publishers will provide the full Bing experience to their users. Users in the Conduit Network will get all the features unique to Bing, decision tools that go beyond search, and an excellent browsing experience that is constantly evolving.

I would like to thank Google for four years of partnership, which greatly contributed to the growth of the company. I would also like to express my appreciation to Bing and the Conduit team, both of whom worked hard to bring this partnership about.

If you have questions, ideas, suggestions, we want to hear from you. Write to us at: contact_us@conduit.com.


comments so far. Add yours.

  • http://streaminginternetradiotoolbar.com Streaming Internet Radio

    As a Conduit publisher, I find this news very exciting and I look forward to the new tools that will be at my disposal.

    I’m 100% sure that all my users will find the new Bing experience exhilarating!

    Brilliant news, brilliant article!

    Sean:
    http://streaminginternetradiotoolbar.com/

  • Anonymous

    Google has recently decided to end a deal w/ a toolbar affiliate and over a yr ago meaningfully lowered its TAC rate (rev share) w/ another large toolbar company. So, Google may not have competed strongly for this business. Moreover, Conduit probably represented only about $20mm in gross profit/yr to Google, which equates to only about 0.1% of 2010 gross profits and 0.2% of EBITDA ($20mm is a big number, but an immaterial loss for Google).

  • Anonymous

    Not sure what information you are basing these numbers on. According to Alexa.com Conduit is ranked 31 globally (by traffic) so I don’t understand how you got your $20MM figure…can you elaborate?

  • Anonymous

    sure, conduit supposedly does ~$100mm/yr in revs. i’m assume 100% of that comes thru its Google partnership. Google on avg keeps ~20% of network revs and shares ~80-85% w/ the affiliate (conduit in this case). so, in this case, Google records ~$125mm in GAAP revs and ~$20mm in gross profit (conduit reports the diff, or $100mm, as its GAAP revenue). make sense now?

  • Anonymous

    another comment: drawing revenue conclusions from traffic numbers on the web is a fool’s game. there is often very little correlation, it’s a terrible predictor

  • Anonymous

    The headline on this article is likely incorrect… I think it should be Google Dumps Conduit Into Bing’s Arms.

    Word on the street was that Google made a policy decision way back to focus stop its support (via ad syndication) of toolbars that competed with the Google Toolbar. The Conduit deal was always a sore point as it was bad precedent. Apparently the sunset date was 11/30/10.

  • Anonymous

    Here’s the worst thing about this deal (for conduit):
    Zynga is not going to stick with them and run Bing results, not after Google invested in them.

    This means that their #1 publisher, which generates over 50% of the daily installs is going to ditch them.

    Not sure if MCSF took that into account when signing the deal.

  • Anonymous

    I seriously doubt that is the case. Google’s core business (and revenue stream) is from search. As big as Google is, they can’t afford to just give up on hundreds of millions of dollars of revenue. I don’t even think they consider Conduit a competitor to the Google Toolbar, since Conduit gets distribution through publishers, the Google Toolbar is an end user search device (totally different ways of getting distribution). At the end of the day, Conduit generated a lot of searches for Google that Google would not have gotten otherwise.
    Knowing this highly competitive industry, Microsoft probably just made a very aggressive offer before Google could react.

  • Anonymous

    I seriously doubt that is the case. Google’s core business (and revenue stream) is from search. As big as Google is, they can’t afford to just give up on hundreds of millions of dollars of revenue. I don’t even think they consider Conduit a competitor to the Google Toolbar, since Conduit gets distribution through publishers, the Google Toolbar is an end user search device (totally different ways of getting distribution). At the end of the day, Conduit generated a lot of searches for Google that Google would not have gotten otherwise.
    Knowing this highly competitive industry, Microsoft probably just made a very aggressive offer before Google could react.

  • Anonymous

    Apparently their policy decision doesn’t stop them from working with ASK/IAC and AOL.

  • Anonymous

    We are committed to providing you the highest level of customer service online!

  • http://twitter.com/PJ_Artmanha PJ da PagodeFM

    Mas o meu dinheiro diminuiu $$$ e as pesquisas tambem

  • http://www.decor-rent.com decorrent

    Interesting article.
    I think we need another 3 hours in a day to keep up with all the changes that are happening on the net now days.
    Thank you so much for this post.

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