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Yahoo to test search ad outsourcing with Google

     

mardomania

7:23 pm on Apr 9, 2008 (gmt 0)

5+ Year Member



news just out. their going to do some test runs. sounds like a desparate attempt to get more money out of Google:

Market Watch Article [marketwatch.com]

[edited by: werty at 3:21 am (utc) on April 10, 2008]
[edit reason] Turned link into hyperlink to fix side scrolling [/edit]

AdSenseAdvisor

10:00 am on Apr 10, 2008 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Yahoo will be testing Google's AdSense for Search service, which will deliver contextually targeted ads alongside Yahoo's own natural search results. This is only a limited test, and does not necessarily mean that Yahoo will join the AdSense program.

For more information, please see Yahoo's press release at: [yhoo.client.shareholder.com...]

sem4u

11:51 am on Apr 10, 2008 (gmt 0)

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



Yahoo! Inc. (Nasdaq:YHOO), a leading global Internet company, announced today that it will begin a limited test of Google Inc.'s AdSense for Search service, which will deliver relevant Google ads alongside Yahoo!'s own search results. The test will apply only to traffic from yahoo.com in the U.S. and will not include Yahoo!'s extended network of affiliate or premium publisher partners. The test is expected to last up to two weeks and will be limited to no more than 3% of Yahoo! search queries.

This clears things up.

maximillianos

12:12 pm on Apr 10, 2008 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



And Microsoft:

"Any definitive agreement between Yahoo! and Google would consolidate over 90% of the search advertising market in Google's hands...."

Sounds familiar. Let's look at the browser market... IE has about a 90% market share. Now lets look at the desktop market... Windows holds close to 90% market share. [cited: [en.wikipedia.org...]

Microsoft is not happy that someone else if playing their game... how funny.

aleksl

1:57 pm on Apr 10, 2008 (gmt 0)



weeks: it's odd that Yahoo would turn over this much of their revenue aspect of your biz to someone else.

Jerry Yang is either an idiot or a genius. We're about to find out.

Or just lucky until now.

By not selling out to M$, and by not hiring someone competent to run the biz Yahoo! might as well continue digging their own grave. Giving a bulk of your revenue to a competitor sounds like either a really awesome idea, or the last one Yang and Y! will be remembered for. Sounds to me like it will be a short-lived memory.

sem4u

2:12 pm on Apr 10, 2008 (gmt 0)

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



So this test will take up to two weeks...which is around the time Yahoo will report their Q1 results. I expect Yahoo's Q1 results to be bad...but good news on the Google tie-up could help raise the value of the shares in an attempt to fend off M$.

BillyS

3:42 pm on Apr 10, 2008 (gmt 0)

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



It seems to me that the price climbing back up to $27 so quickly in the current market makes a pretty good case that Yahoo has been making good decisions in response to MS.

Y! will stay in the $27 range as long as the MS offer is on the table AND the market still thinks the deal has a chance to go through. If either of these two factors change, Y!'s stock will plummet and Jerry Yang will have to go back to his gardening.

venti

3:50 pm on Apr 10, 2008 (gmt 0)

5+ Year Member



Grasping at straws it seems...

jcoronella

6:19 pm on Apr 10, 2008 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



>> maximillianos - "IE has about a 90% market share"

That is wrong, it's closer to 65% - less than Google's share of search.

IanKelley

6:36 pm on Apr 10, 2008 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



If either of these two factors change, Y!'s stock will plummet

Definitely a possibility, but looking at the past couple of years the current price isn't artificially high by any means.

[edit: typo]

[edited by: IanKelley at 6:38 pm (utc) on April 10, 2008]

maximillianos

8:08 pm on Apr 10, 2008 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



That is wrong, it's closer to 65% - less than Google's share of search.

It appears we are both wrong... at least according to our friends at Wikipedia... Internet Explorer in 2007 held a 79% monopoly... but dropping every year... So perhaps right now maybe 75%... We can only hope!

[en.wikipedia.org...]

(Interesting note: The above article also cites that globally the IE marketshare is closer to 83%)

[edited by: maximillianos at 8:26 pm (utc) on April 10, 2008]

IanKelley

8:24 pm on Apr 10, 2008 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



less than Google's share of search

Also note that a Google/Yahoo agreement, if it happens, would not consolidate "search". It would consolidate PPC based advertising in the search result niche. And of course the 90% number only exists in the MS press release.

Gumball Monkey

1:11 pm on Apr 12, 2008 (gmt 0)

5+ Year Member



There is commercial sense in using Adsense as backfill, but quite why Yahoo would want to hand YSM over to their main competitor is beyond me - it is surely the largest revenue stream for the company? And for a company which already struggles to monetise its existing properties, I fail to see how they'll manage once Google have taken their share.

Yahoo need a management team that lives in the real world, for $27/share I'd have torn Microsoft's arms off!

BTW - a 3% traffic test is significant given the US market's traffic levels.

walkman

1:30 am on Apr 14, 2008 (gmt 0)



>> Also note that a Google/Yahoo agreement, if it happens, would not consolidate "search".

IMO: people do not specifically to Y! because of superior results; they are using mail, finance, news etc., and then all of the sudden they need to search and they do so. Even if 50% do, it would be hard for Yahoo to justify spending all that money in devel when they can just use G and all the ad money is profit.

PPC Consultant

5:44 pm on Jul 18, 2008 (gmt 0)

5+ Year Member



Google has too much power. It is becoming a monopoly. I would welcome a more competitive environment...
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