Skip to content

History · 1998

The search engine that printed the price next to the result

In 1998 a search engine launched with a rule so blunt it reads like one of the boards in this census: results are ordered by what the advertiser paid, and the amount is printed next to each one.

GoTo.com came out of Bill Gross’s Idealab with a proposition that horrified the search industry: advertisers bid on keywords, the highest bidder appeared first, and the price paid was displayed beside the listing. Search results were an auction, and the auction was public.

The reasoning was that an advertiser willing to pay most for a term was probably the most relevant answer to it — money as a relevance signal. That is not true in general, and the format was widely attacked at the time as corrupting the idea of a search result. But it solved something nobody else had solved: search engines in 1998 were burning money without a business model, and this one printed cash.

What it became

GoTo.com renamed itself Overture Services in 2001 and was acquired by Yahoo! in 2003. By then its core idea — a keyword auction where advertisers bid for position — had been absorbed, refined and vastly improved by everyone in search, most consequentially in the model that funds the modern web. The main refinement was that relevance and click-through rate were folded into the ranking alongside the bid, so the highest bidder no longer automatically won.

Two ideas from GoTo survive intact in the boards on this site:

And the part that did not survive

GoTo eventually stopped ranking on price alone, because price alone produced bad results and bad results lost users. Nearly every board in this census ranks on price alone. Most of them have very few users, which means they have not yet met the problem that forced the change — the boards with real traffic are the ones that will meet it first.

The field guide is partly a record of boards feeling around for the answer: daily resets, decay, free tiers, community votes bolted onto a paid list. Each is an attempt to stop a leaderboard from becoming a permanent monument to whoever spent the most, once.

Keep reading