June 23, 2008

Google ad deal - Yahoo!

When it seemed that after the rejection of the bid from Microsoft to Yahoo! things could return to a normal situation, a new movement has convulsed again this tranquility, and is that Yahoo appears to be a very tempting candy.

Although this time it is not Microsoft, who have already had enough, But we are talking about another online giant: Google .

And is that Google has reached an advertising agreement with Yahoo! for Google to sell advertising on Yahoo! searches by placing Adsense on those searches.

This agreement, Yahoo! will allow an opportunity to generate annual sales of up to $ 800 million, has an initial duration of 4 years renewable every 3 years, and show only the results advertising Google on searches for Yahoo! in the U.S. and in Canada.

But what really is this agreement?, Because without going deeply into details, is many things, and some not so good.

I hope that Yahoo! have very clear they want to pursue the strategy, because although it appears that the agreement is not very axfisiante, Yahoo! and leaves some leeway when it comes to when and how much advertising display, virtually cedes to Google your piece of the pie on advertising online, because how you manage to advertising with Yahoo!, being able to do with Google?. Nosé why, but I feel that these have been able to Yahoo! over their hatred of Microsoft (even when properly assess the takeover bid), that the benefits of the agreement.
Of course, Google is the ultimate beneficiary of this agreement, because as Peter Grifin say in Family Guy, this according to Microsoft is like a "Zas!, Across the mouth"
If the Microsoft takeover of Yahoo, many said that in the online advertising pie and only have two competitors, Google and "Microhoo" (to give a name to the resulting company), this movement is Not an almost monopolistic online advertising market?, Microsoft thinks so, and therefore has already complained . Curious that the "king" of monopoly monopoly complain, hehe.

But like Google are not stupid, and know the punch that they have, then have rushed to defend the agreement , noting among other things, that the agreement:

This is not a merger. But only seeks to facilitate access your Yahoo! advertising technology through AdSense.
It does not eliminate a competitor. This means that Yahoo! will continue to participate in the online advertising business, and that despite the agreement, yahoo! You can use Google's technology as you want, whether much or little.
Yahoo! does not prevent to reach similar agreements with other companies
Does not increase the share of Google's search
Will not increase by Google, the price to advertisers, although this is less clear