IAC Inc. (NASDAQ:IAC) Q4 2022 Earnings Call Transcript

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There’s a big difference if you want to draw the line between commodity content and differentiated content. And I think that commodity content, which I’ll call kind of fact-based content has been threatened or significantly removed, but from the search engines for a long time. It exists on the search engines in SEO, but generally, they hold on to that traffic now. So something like greater than 50% of traffic doesn’t leave Google anymore. And that’s in those fact based questions where Google can provide the answer or the Chatbot can provide the answer. We we’ve been dealing with that preparing for that and are kind of past that as it relates to the search engines. The format of that may change on the search engine itself, but we’re not counting on that kind of traffic and haven’t relied on that kind of traffic from the search engines for a long time.

And you could argue in that context, again, that brand is even more important voice is even more important. And that’s why we have to lean into our differentiated content and our differentiated brands. We have to work we’re sending people to go see the hotels, sit in the hot tub, check out the view. And that’s really important. We have people trying to pan cooking the recipe, tasting the results, seeing what happens when the pan gets too hot or too cold, or whatever it is. And putting our brand behind that. And I do think that’s really important in a differentiated world. There are opportunities there, which I mentioned. I do think on the cost side and some of the earlier stages of content development, this can help drive efficiency. I think that’s true at both Dotdash Meredith and even at places like Angi where what these bots have helped do is allow individuals to be better at creating content.

So like, take a service professional, for example, instead of having to hire an agency to build a profile and to have the right pictures and imagery and Pros you can use the chatbots to help with that or we can enable the chatbot to help certain professionals to do that to build out their directory profiles. And I think things like that are really valuable uses of the content. Again, like with anything, the technology will evolve and will evolve with it. So we have — it’s certainly front and center in our mind and we view real opportunities for innovation there. On your question, Ross. Okay the second question was year one retention. So I’m not as troubled by it, because again, it’s a process to find the ones that work, but I do believe there’s real opportunity to improve this.

So like anything where most of the churn happens in the first 30-60-90 days. And there are things we know we’re doing in the first 30-60-90 days that negatively impact retention that we are going to fix or change. Examples of that are our pricing for example. So pricing is not crystal clear sometimes in how or — not pricing I should say spend that crystal clear how your spend will work out in the first 30-60-90 days. And we can, what we’re doing things now to simplify that to make the spend much more predictable on a variable product is that you can have variable spend in aggregate. And so we’re making changes to make that more clear to customers or prevent those experiences that lead people to overspend in turn. The other thing is efficiency.

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