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Google, Yahoo partially disclose terms of ad pact

     
6:09 am on Aug 9, 2008 (gmt 0)

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SAN FRANCISCO (Reuters) - Google Inc and Yahoo Inc released on Friday excerpts of a pact covering their search advertising partnership that keeps secret financial terms and the extent of other ties between the two.

In a filing with the U.S. Securities and Exchange Commission, the companies take the unusual step of disclosing the contract governing the partnership, but leave out any financial terms, such as the revenue split on their deal.

Companies in the Internet industry typically jealously guard the terms of such contracts to protect their ability to negotiate pricing at variable terms with other customers.

Critics say the deal threatens competition for advertising that runs alongside Web searches. Congressional leaders have conducted hearings to investigate what impact the partnership could have on the Internet market. The agreement covers the United States and Canada, but not other international markets.

Reuters [news.yahoo.com]

6:43 am on Aug 9, 2008 (gmt 0)

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Yahoo and Google SEC filing
[sec.gov...]
2:59 pm on Aug 11, 2008 (gmt 0)

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does anyone know or can tell from this agreement how much of search yahoo! intends to lease out to google?

its my understanding yahoo is going to backfill their search results with google ads....but at their discretion.

i'm just wondering if anyone happened to know what percentage of ads on yahoo! would be google ads?

personally, i think long run.....yahoo is going to 100% outsource their search to google. their will be no reason to use yahoo/panama when you can use google to get on yahoo.

6:52 pm on Aug 11, 2008 (gmt 0)

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does anyone know or can tell from this agreement how much of search yahoo! intends to lease out to google? its my understanding yahoo is going to backfill their search results with google ads....but at their discretion.

That seems to be the case. From a Yahoo conference call in June:

Sue Decker: We are really excited about the potential of what we are announcing. It allows us to do what we do best. And it gives Yahoo full control over all aspects of its business. Hallmark of this agreement is its flexibility. It also enhances our options. Lets us determine whether and how we display Google's paid search ads alongside ads from our own Panama marketplace. We will display Google paid search results where they deliver better value. We decide how much of our search inventory will display those ads. We keep unfettered control over the user experience.

....

One thing we learned is that GOOG monetizes well for query ads, but not as competitive in the tail. So we want control in segments where we are comparable in terms of performance. So with this we get the best of both worlds.