Google and Yahoo strike ad deal
A important news you need to know how this deal will effect your advertising effort moving forward with the 2 biggest Giants of Internet.
Silicon Valley / San Jose Business Journal
Yahoo Inc. agreed Thursday to a search-advertising deal with rival Google Inc. just hours after announcing that Microsoft Corp. was no longer in the picture.
Yahoo (NASDAQ:YHOO), based in Sunnyvale, said the nonexclusive pact with Mountain View-based Google (NASDAQ:GOOG) enables it to run Google ads alongside its search results and on some of its Web properties in the U.S. and Canada.
“We believe that the convergence of search and display is the next major development in the evolution of the rapidly changing online advertising industry,” Yahoo CEO and co-founder Jerry Yang said in a statement. “Our strategies are specifically designed to capitalize on this convergence — and this agreement helps us move them forward in a significant way.”
Yahoo leaders said they hope the deal could generate as much as $800 million a year.
Under the terms of the agreement, Yahoo will select the search term queries for which — and the pages on which — Yahoo may offer Google paid search results. Yahoo will define its users’ experience and will determine the number and placement of the results provided by Google and the mix of paid results provided by Panama, Google or other providers. The agreement applies to paid search and content match and does not apply to algorithmic search and also applies to current partners in Yahoo’s publisher network.
Analysts say in essence the Yahoo will be a reseller of Google ads.
Yahoos shares plunged after the announcement that Redmond,Wash.-based Microsoft (NASDAQ:MSFT) walked away from an offer to buy a portion of Yahoo. They dropped 10 percent, or $2.63, to $23.52 by Thursday’s closing bell and declined as much as 7 percent more in Friday trading.
Start building position now as shares of Yahoo are now backdown to before their January earning announcement.