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Opera Axes Ad Model, Patches Browser
By Elizabeth Millard

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Web browser developer Opera Software has permanently removed the ad banner and licensing fee from its Web browser, focusing instead on creating revenue from integrated search functionality.

Web browser developer Opera Software has permanently removed the ad banner and licensing fee from its Web browser, focusing instead on creating revenue from integrated search functionality.

"It feels good to be able to do this, because we think it will give users a better experience," said Opera communications director Tor Odland. "For us, it will help us increase market share and make ourselves available to those outside the technological world."

The strategy shift was possible as a result of a boost in its search-related revenue stream, noted Odland. In the past, Opera relied on search as only one part of its model but has now made agreements with search firms like Google, allowing the company to drop banner ads and user fees.

Opera also expects to gain revenue through its fee-based support services, which are available to users for $35 per year.

In making the shift, the company expressed confidence that more users will soon be singing Opera's praises.

"It's an excellent time for browsers that are an alternative to Internet Explorer," Odland noted. "We're joining Firefox in the crusade to win IE users."

Currently, Opera commands a very thin slice of the browser market pie, noted WebSideStory analyst Geoff Johnston. Opera's numbers are tricky to pinpoint due to some browser cloaking tactics the company uses to be compatible with Web applications, but Johnston estimates that the browser commands between 0.5 percent and 1.5 percent of the market.

Read the full story on eweek.com: Opera Axes Ad Model, Patches Browser


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