Monday, January 17, 2005

The Comparison-Shopping Shakeout

Forrester Research

This research and conclusion can be applied to travel comparison sites also.

"Use of comparison-shopping sites rose from 2003 to 2004, but problems still lurk on the horizon. Most pressing is comparison-shopping sites' over-reliance on portals for both traffic and revenue. Portal comparison-shopping tools like Yahoo! Shopping and Froogle have the scope and resources to dominate pure plays. This arduous competition means that most pure-play comparison-shopping sites must cozy up to a potential acquirer, focus on a specific niche, or risk extinction. "

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