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Yahoo and Google announce advertising deal

     
11:17 pm on Jun 12, 2008 (gmt 0)

WebmasterWorld Administrator jatar_k is a WebmasterWorld Top Contributor of All Time 10+ Year Member



Yahoo Inc. reached a search-advertising pact with rival Google Inc., an alliance that marries the online advertising systems of two industry giants and deals a blow to Microsoft Corp.'s Internet ambitions.

[online.wsj.com...]
(above link only works sometimes)

another
[reuters.com...]

[edited by: jatar_k at 11:28 pm (utc) on June 12, 2008]

11:24 pm on Jun 12, 2008 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Link no worky. Here is a link and summary:

economictimes [economictimes.indiatimes.com]

Yahoo Inc and arch rival Google Inc said on Thursday they had entered a non-exclusive partnership on search advertising expected to add as much as $800 million in annual revenue.

Under the agreement, Yahoo can run ads supplied by Google alongside its own search results and on some of its websites in the United States and Canada. Yahoo will decide where the Google ads will run and which search terms it can use, Yahoo said in a statement.

The deal initially spans four years, with options to renew it up to a period of 10 years.

11:32 pm on Jun 12, 2008 (gmt 0)

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Does this explain why today many of my google search engine searches say they are coming from Yahoo site?
11:59 pm on Jun 12, 2008 (gmt 0)

WebmasterWorld Administrator bakedjake is a WebmasterWorld Top Contributor of All Time 10+ Year Member



Did Yahoo just sign up for AdSense? :)
12:08 am on Jun 13, 2008 (gmt 0)

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Hopefully Yahoo! will not be able to whore out these clicks to their shady network of domain landers and arbitrage sites.

Good tracking will be a must with this deal. Wonder what it means for "Overture"/YSM.

12:39 am on Jun 13, 2008 (gmt 0)

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It means that Yahoo gets to keep it's best priced keyword ads and google will fill in whenever the inventory at yahoo for a keyword is low or non existent or when google's payout per click to yahoo would be higher than what yahoo would earn from YSM. Pretty incredible that Yahoo went to all this trouble to end up exactly back where they were in 2003!
1:04 am on Jun 13, 2008 (gmt 0)

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As someone who advertises on both Yahoo Search Marketing and Google adwords I REALLY want to know how this affects me. I have different campaign strategies on both and the "quality score" is different on both platforms. No word from either camp.
1:41 am on Jun 13, 2008 (gmt 0)

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I think Yahoo's system is flaky at best. Replacing any of it with Google ads is only a good thing for me. I'm sure your mileage will vary.
1:44 am on Jun 13, 2008 (gmt 0)

WebmasterWorld Administrator goodroi is a WebmasterWorld Top Contributor of All Time 10+ Year Member Top Contributors Of The Month



if you are wondering how this will impact your ppc campaigns, i would guess that the search engine with the higher bid prices will be the ads that get shown.

this could be a blow to people that were using yahoo ppc to power their google adsense arbitrage. now it seems that yahoo is cutting out the middle man and going straight to the source.

2:31 am on Jun 13, 2008 (gmt 0)

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So how does this impact Adsense? Does it spread out the ad cash to more web properties... ie - less for the little guys?
4:21 am on Jun 13, 2008 (gmt 0)

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"Hopefully Yahoo! will not be able to whore out these clicks to their shady network of domain landers and arbitrage sites."

I think this is one of the most important points brought up here, and the reason why I stopped dealing with Yahoo for anything but the cheapest clicks a loooong time ago.

Google had better have a 'Yahoo Search Results ONLY' choice on their interface - otherwise, I'm not interested.

5:27 am on Jun 13, 2008 (gmt 0)

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The quality concerns are well founded, but only if yahoo syndicates Google results, which I do not believe is the case in this partnership.
6:36 am on Jun 13, 2008 (gmt 0)

WebmasterWorld Senior Member marcia is a WebmasterWorld Top Contributor of All Time 10+ Year Member



From the Washington Post

Liveblogging Yahoo-Google Conference Call [washingtonpost.com]

It's pretty clear, and sounds flexible enough.

7:36 am on Jun 13, 2008 (gmt 0)

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[Did Yahoo just sign up for AdSense? :) ]

Heheh!

9:43 am on Jun 13, 2008 (gmt 0)

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Not sure if a Google/Yahoo partnership is good for the market. Big G is getting way too powerful it would be nice to see some competition...
9:47 am on Jun 13, 2008 (gmt 0)

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Wasn't Yahoo in a mess and had little choice in the matter?
I forsee Microsoft and Google having future legal battles about compatible software.
Which one will win in the end?
My money is on Microsoft as they control what hardware we use to a huge extent.
Just a thought.
10:41 am on Jun 13, 2008 (gmt 0)

WebmasterWorld Senior Member sem4u is a WebmasterWorld Top Contributor of All Time 10+ Year Member



From Reuters:

The deal initially spans four years, with options to renew it up to a period of 10 years.

That is a long term deal. I doubt M$ will look at Yahoo again now.

12:45 pm on Jun 13, 2008 (gmt 0)

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Did Yahoo just sign up for AdSense?

Ha! That was my first reaction too!
12:52 pm on Jun 13, 2008 (gmt 0)

WebmasterWorld Senior Member tropical_island is a WebmasterWorld Top Contributor of All Time 10+ Year Member



I use both & have been at the point of dropping Yahoo for the last 6 months.

This will make my decision a lot easier.

The quality of Yahoo PPC has deteriorated to such an extent that the low volumes on Yahoo proper no longer justify the work involved to run separate campaigns.

When my deposits run out I will drop Yahoo US.

12:59 pm on Jun 13, 2008 (gmt 0)

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When my deposits run out I will drop Yahoo US

LMAO - you an every other sane person... they will be G's bitch!

I cancelled both UK and US Y!SM accounts about six months ago now... not noticed any real difference in traffic or sales - I even had to check the other day to ensure I had closed them as wasn't sure. That shows how little difference they made - apart from charges on my credit card bill!

1:31 pm on Jun 13, 2008 (gmt 0)

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"Google had better have a 'Yahoo Search Results ONLY' choice on their interface - otherwise, I'm not interested."

I just sent an email to my AdWords team saying the exact same thing.

1:38 pm on Jun 13, 2008 (gmt 0)

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Microsoft 2.0
2:05 pm on Jun 13, 2008 (gmt 0)

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Microsoft very much blow the deal with Yahoo and a chance to be a player in search. Although I don't value Yahoo that much but for MS it needs Yahoo so it can be competitve to Google.

This is a the worst case scenario for Microsoft where you suppose to get a partner to help you out but instead you create another new enemy. And it is tougher to fight 2 than 1.

"The whole deal about MS buying Yahoo" is like a joke now. MS should have calm down a litle bit and make it through. That's the best way for both Y & MS.

In my opinion, if MS can't get Yahoo, they should exit search!

If Yahoo wiser and the deal is not exclusive, they should make a full cooperative with MS like combine MS AdCenter and YSM together. If they stay with Google, in long run Google will kill Yahoo.

2:25 pm on Jun 13, 2008 (gmt 0)

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The Wall Street Journal is reporting:
The companies agreed to delay its implementation for as many as three and a half months to allow regulatory review.

We all need to realize that this isn't a done deal--it has to go through regulatory approval first, which will take a few months.

I suspect that Yahoo! will use the Google ads to fill spots where they have traffic but don't have advertisers. But we just have to wait and see what really happens and whether it gets regulatory approval or not.

2:51 pm on Jun 13, 2008 (gmt 0)

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Microsoft told Yahoo that it was no longer interested in pursuing a takeover, even at the $33 a share
....

Microsoft said it was prepared to acquire an additional 16% of Yahoo for $35 a share

Am I missing something or it is very contradictive here?

3:12 pm on Jun 13, 2008 (gmt 0)

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Yahoo! will use the Google ads to fill spots where they have traffic but don't have advertisers

And that's increasing by the day. Y!SM (in the UK at least) is losing advertisers daily and that's not all small 'mom and pop' businesses - that's big agencies and large corporations.

Panama has been an absolute disaster and partnering with G to backfill the search queries where they don't have advertisers will simply continue to increase because more and more people will figure it's simpler to manage one system and opt in to Y eyeballs, than managing one system and one pony of a system.

This if it goes through will kill any independence Y! thinks it has or will ever have, will decrease competition and will be bad for most of us IMO.

4:11 pm on Jun 13, 2008 (gmt 0)

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"Google had better have a 'Yahoo Search Results ONLY' choice on their interface - otherwise, I'm not interested."

"I just sent an email to my AdWords team saying the exact same thing."

Are you saying you want to choose "Yahoo Search Results Only" and not the other search network partners? You can already choose to run your ads on only Google search and not the network of search partners.

At any rate, this makes AdWords even more powerful and they have been raising the minimum bids on keywords swiftly and steeply. Now your cheap clicks on Yahoo will be buried or replaced by higher priced AdWords advertisers.

Google has put the smaller online retailers (and of course, affiliates) out of business with their steep increases in the minimum bids. They want to offer fewer ads at higher click costs and they would rather repeat those ads on the deeper search result pages than run any 10 cent ads.

4:40 pm on Jun 13, 2008 (gmt 0)



If they stay with Google, in long run Google will kill Yahoo.

I second that.

Unfortunately, nobody else has a financial capability to compete with Google in Search except Microsoft.

Microsoft said it was prepared to acquire an additional 16% of Yahoo for $35 a share

Am I missing something or it is very contradictive here?

Microsoft wanted Yahoo! Search technology, not the whole Yahoo. Apparently there's lots of holes in Yahoo bucket we are not aware of. My second guess is that MS wanted specific patented technologies that at this moment present a legal/technical barrier to their own SE.

Google has put the smaller online retailers (and of course, affiliates) out of business with their steep increases in the minimum bids. They want to offer fewer ads at higher click costs and they would rather repeat those ads on the deeper search result pages than run any 10 cent ads.

Bingo. The dream of 10 cent advertising evaporated fast. :) Until another SE comes along with enough traffic and interest in these thousands upon thousands 10 cent advertisers. Let's cheer all: Mi-cro-soft! Mi-cro-soft! :)))

5:39 pm on Jun 13, 2008 (gmt 0)

WebmasterWorld Senior Member swa66 is a WebmasterWorld Top Contributor of All Time 10+ Year Member



Seems like Yahoo! might be the first of a super premium publisher now.
The rest of us aren't allowed to show adsense on search results.
6:54 pm on Jun 13, 2008 (gmt 0)

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While Yahoo and Google are taking great pains to position this deal as partial and non-exclusive, IMO it's overwhelmingly likely that 90%+ of Y!'s inventory will be monetized by AdWords going forward. As someone who's seen detailed monetization analyses of Y!, G and MSN over large swaths of spend, I can tell you there is no appreciable area where Google's monetization is not so much higher as to warrant continued monetization by Yahoo via their own PPC inventory.
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