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June 13, 2008

The Big Questions Surrounding the Yahoo-Google Deal

In case you haven't heard the news Yahoo will begin showing Google's Adwords ads in the next few months pending a Justice Department review. This all happened on the same day that Microsoft and Yahoo officially broke off talks about Microsoft buying Yahoo.

The big questions are:

1. What does this do for Yahoo?
The ads on Google have more competitive bids. Yahoo will receive a percentage of what Google receives from these clicks. This will actually bring more money to Yahoo than their own ads by themselves. This will also probably give Yahoo a jump-start to their bidding competitions. It remains to be seen whether the Google ads compete with the Yahoo ads on a level playing field.

2. What does this do for Google?
This will not actually improve Google's statistics for search volume. Still, it's just one more piece of real estate for Google to expand their ad network to. It also provides a way for Google to boost its click revenue.

3. What does this mean for the search industry?
Google is growing in dominance. Yahoo is being given a brief reprieve from their long slow fall from grace. Microsoft is left at the altar wondering what could have been.


Ben Mack said...

Kimber, I agree with your assessments about What this does for Yahoo and Google. Although my take about what this does for Google is a little more extreme.

Please view here=> http://www.youtube.com/watch?v=eUHBPuHS-7s

Later today, I'll redirect MINDCONTROLMADNESS.COM from Dave's book to the video.

Greetings from Vegas!


Ben Mack said...

you so aren't the blogger i thought you were

Kimber Cook said...

@ben mack

Thanks for stopping by the blog. Maybe this blog post didn't sound like me because it was written by my coworker. He's PPC. I'm all organic!

RogerFranklin said...

Yes, both Yahoo and Google will have advantage with this contract but, in my view Yahoo will gain more advantage compared to Google.