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YAHOO PARTNERS WITH GOOGLE

by Stephen Roome

It’s been eleven years since Yahoo & Google last worked together, when they partnered to carry Google’s ads on Yahoo. The arrangement lasted four years until Yahoo released its own new search engine and PPC system. In this new arrangement, Google is set to provide search results, ads and image search services for Yahoo. Google will pay Yahoo a percentage of the revenue received from these results. Yahoo already had arrangement with Microsoft, but when it was renegotiated Yahoo had inserted into the agreement that it could use other search & PPC providers.

Google’s partnership complements the search and PPC services provided by Microsoft Bing. Microsoft said this about the situation, “We remain committed to the Yahoo syndication partnership and will continue to serve the majority of Yahoo traffic as outlined in our contract extension. Yahoo is a valued partner and we look forward to continuing to serve our advertising customers through the Bing Ads marketplace.” Bing PPC ads will still emerge on 51% searches that Yahoo provides. The other 49% will be provided by any other company that Yahoo chooses ... in this case Google - or via the Yahoo based PPC system. Europe has been left out of this negotiation likely due to the European Google investigation into the anti trust situation. Google holds 90% + or more of market share in Europe.

Google continues to lead the US market with a 64% market share (down from 69% peak), Yahoo wishes to ride on Google’s significant market share and for Google to help them achieve further market influence. Many businesses already advertising on Google’s PPC platform could benefit by increased visibility across multiple platforms. Sites with high rankings on Google could see a traffic related organic search boost on Yahoo. For those advertising on Bing there will  be minimal changes

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