Google announces advertising agreement with Yahoo
- 7 Comment
Google today announced that it has reached an agreement that gives Yahoo! the ability to use Google’s search and contextual advertising technology through its AdSense for Search and AdSense for Content advertising programs. Under the agreement, Yahoo! has the option to display Google ads alongside its own natural search results in the U.S. and Canada.
In addition, Yahoo! can serve contextually targeted ads on its U.S. and Canadian web properties as well as on its current publisher partner sites. Yahoo will continue to operate its own search engine, web properties and advertising services.
In addition, Yahoo! and Google agreed to enable interoperability between their respective instant messaging services bringing easier and broader communication to users.
“This commercial agreement provides Yahoo! with the opportunity to deliver more relevant ads to users and provide advertisers and publishers with better advertising technology to help them succeed in their own businesses,” said Eric Schmidt, Chairman and CEO of Google. “This agreement will preserve the competitive and dynamic online advertising space.”
As a result of the agreement, Yahoo! will be able to complement its own advertising program with Google’s advertising technology. As a result, advertisers will be able to better reach consumers, and Yahoo! and its current publisher partners can generate more revenue. Yahoo can use Google’s advertising technology on as many or as few of its search results and content pages as it chooses.
This non-exclusive agreement allows Yahoo! to enter into similar agreements with other advertising providers. In addition, Yahoo! will maintain relationships with its own advertising customers and will continue to rely exclusively on its own advertising program outside of the U.S. and Canada. The agreement has a term of up to ten years: a 4-year initial term and two 3-year renewals at Yahoo!’s option. Financial terms between the two companies were not disclosed.
[Source Google Press Release]
7 Comments on this post
Trackbacks
-
svarog said:
This kinda sux. Reduces the competition.
Once we had two large search engines with two different advertising programs, advertisers had the option to choose.
Now Google Advertisers will be featured in both Google and Yahoo, while Yahoo advertisers only in Yahoo.
This will bring everybody moving to Google, and no competition at all.June 13th, 2008 at 5:07 pm -
Rockstar Sid said:
@Svarog - This will benefit the surfers too.. the bond will be healthier inbetween them…
Bcoz of this we will have loads of innovations and new ventures too..
June 13th, 2008 at 8:56 pm -
Siddharth said:
@Savrog I agree with you
but I dont think that the real comp. was between google and yahoo
I believe Yahoo’s ads are not displayed at much places except for geocities and yahoo itself
June 13th, 2008 at 9:24 pm -
MoiN said:
Maybe that’s good?
June 14th, 2008 at 5:59 pm -
Siddharth said:
yep that’s good for GOogle
but Yahoo will face loss for this
June 14th, 2008 at 6:05 pm -
Pallab said:
I really hope someone somewhere (anti-trust authorities) find something wrong with the deal and it falls through.
Its a stupid deal and will achieve nothing other than reinforcing google’s monopoly and pushing yahoo slowly and surely towards death.
How could yahoo do something so stupid?
As soon as they start using adsense they reduce the valuation of their own ad system (as at the moment adsense provides unmatchable cpc). Whatever little advertisers yahoo had would shift to adsense, thus making yahoo wholly dependent on google over time.
This deal is absolutely suicidal.June 16th, 2008 at 2:42 am -
Siddharth said:
@pallab I read on yahoo press release that they have done it for their share holders benefit
but yeah I surely dont know how it will benefit themactually yahoo had begun their downgradeness when they rejected microsoft’s deal and were flying in air
now until they bring out something big they will be losing their market share to Google and Live
June 16th, 2008 at 8:03 am