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NY : Stuck in Google’s Doghouse

September 13th, 2008

Joe Nocera writes …

A few days ago, Dan Savage had his lawyer send a nine-page, 4,000-word letter to the antitrust division of the Justice Department. Mr. Savage, 59, runs Sourcetool.com, a business-to-business Web site that acts as a directory, listing — and ranking — hundreds of thousands of companies that sell industrial products.

Like many Internet entrepreneurs, Mr. Savage built his business model around Google when he started it in late 2005. Using Google’s AdWords program, he planned to make bids on specific search terms — “ball bearings,” say — that would ensure that a Sourcetool ad would be placed high on the right-hand side of the Google page whenever someone searched for places to buy ball bearings. That’s how paid search works.

Talking Business - Stuck in Google’s Doghouse - NYTimes.com

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Advertising, Google, Site Development

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