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Big Firms' Ad Bucks Also Fund Spyware; Fortune 500 members are among the unwitting backers of software that sneaks into computers.
[HOME EDITION]
Los Angeles Times - Los Angeles, Calif.
Subjects: Corporate purchasing, Online advertising, Computer security, Advertising expenditures, Spyware, Big business
Author: Joseph Menn
Date: May 9, 2005
Start Page: C.1
Section: Business; Part C; Business Desk
Text Word Count: 1914
 Abstract (Document Summary)

Some of the biggest search companies, including Yahoo Inc., are also putting money behind programs some consumers can't stand. Yahoo's Overture ad division, recently renamed Yahoo Search Marketing, has a long-standing relationship with Claria Corp., an ad- supported company that installs pop-up ad software. Yahoo places copies of its clients' ads on Claria, splitting revenue that results from that business. In a withdrawn filing for a public stock sale last year, Claria said the arrangement brought in 31% of its $90 million in 2003 revenue.

Goldman Sachs last week estimated that Yahoo took in $20 million annually from Claria and Intermix Media Inc., an adware company recently sued by New York Atty. Gen. Eliot Spitzer. A Yahoo spokeswoman said Claria met the company's standards for informing users what it was doing.

Claria competitor 180Solutions makes pop-up software that is installed automatically through browser security holes. Although the firm said it was cracking down on that practice, it still offers bounties for each installation, a model that analyst [Gary Stein] said encourages "all kinds of sneaky tactics." Recent 180Solutions ads ran on behalf of J.P. Morgan Chase and Disney.

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