CNET (via BusinessWeek): Overture profits down as costs spike

You know you have arrived but perhaps should be afraid you're about to leave when BusinessWeek starts reporting on your problems (picking up CNET's story): paid placement text search ad network Overture reported yesterday its fourth quarter revenue was up, but profit margins are getting slimmer as their distribution partners are taking a bigger chunk. So today Overture responds predictably by increasing the price of the minimum bid from 5 cents to 10 cents.

My prediction: as SEM becomes more and more popular, its availability will spread and the service will become more of a commidity, with margins continuing to slip for the bulk service providers like Overture and Google. Look for more niche audience search advertising opportunities like Business.com.

BTW, doesn't it seem unwisely ironic to pick the NASDAQ symbol "OVER" for a dot-com company?