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Source:CenterNetworks

InfoSpace, (NASDAQ:INSP) makers of the Dogpile and WebFetch search engines, has announced its priorities for 2008. The full memo is below but it boils down to three things: reduce costs, increase traffic and expand the network. I always wonder why the items listed below weren’t done last year, and the year before that, etc. Now they have determined that they need to increase traffic?

Naturally the first thought for "reducing costs" is a workforce reduction. There is no mention of this in the notes below. The company is also looking to increase the traffic to it’s own search properties including Dogpile. I used Dogpile a bit back in say 1999, didn’t even realize they were still around. The last bit is that they want to work on increasing the white label solutions the company provides. This could be their best option instead of attempting to compete with the likes of Google and smaller player Yahoo. 

Here’s the full list of InfoSpace’s strategic priorities:

• Realigning the Company’s operating structure: As part of the Company’s effort to balance its operating structure with the new needs of its business, InfoSpace expects to reduce costs by approximately $7 million to $9 million and as a result will have cash severance charges of approximately $7 million to $8 million reflected in the fourth quarter of 2007.
• Increasing traffic on InfoSpace’s owned and operated search engines: InfoSpace’s online search assets are differentiated by the Company’s metasearch technology and include its award-winning branded websites such as Dogpile.com, which recently ranked highest in customer satisfaction among search engines for the second consecutive year. Additionally, the Company has long-term agreements with both Google and Yahoo! to deliver their search results and text-based advertising listings to its network of metasearch properties and affiliates through 2011. Through significant product enhancements and new direct-to-consumer marketing efforts, the Company expects to increase traffic on its owned search sites.
• Expanding InfoSpace’s distribution network: InfoSpace currently benefits from a solid distribution network with over 100 private label partners, including 6 new deals signed in the fourth quarter. In 2008, the Company expects to further expand its distribution network by attracting new distribution partners and broadening its product set to include a new portal product and other value added offerings.

This entry was posted on Thursday, January 3rd, 2008 at 10:41 am and is filed under search, Insights, 2008, InfoSpace. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.