Benefits of Yahoo-Google Partnership

Not long ago Yahoo have had long discussions with Microsoft about a possible partnership between the two giant companies. Rather on 12 June 2008 Yahoo found the right answers in Google. Google’s expertise and technologies in leveraging from paid search have eventually sealed the partnership with Yahoo.

Google has been leveraging effectively from tail keywords with its paid search platform Adwords, however this is one of the biggest problems of Yahoo Search Marketing. Yahoo Panama makes it difficult for advertisers to efficiently scale up their global campaigns, letting alone scaling up in the long tail. Yahoo requires advertisers to set up in such a way that each country has its own invoicing process. Also, without creating multiple accounts in different countries, launching a global campaign is impossible.

By showing Google’s ads on Yahoo’s unsold ad inventories which are essentially the “under-monetized” tail keywords, both Yahoo and Google will be benefited. Google will hopefully be able to further boost traffic volume for its own advertisers through Yahoo’s long tail, and Yahoo will leverage financially. The deal will not only allow Google ads from being displayed on Yahoo’s own properties, but also on certain selected partners of Yahoo.

I expect this partnership will not make much difference to the quality of Yahoo’s PPC traffic, and hopefully not much of its existing traffic will be absorbed by Google. Now there are still 2 interesting questions left for search engine advertisers and publishers:

  • Will Yahoo be replacing more of its PPC ads with Google’s ads for inventories where both Google and Yahoo can leverage more?
  • Will Yahoo be eventually replacing its own Panama platform with Google’s Adwords platform?
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Posted on June 22, 2008
Filed Under Adwords, Google, PPC, YSM, Yahoo |

Comments

One Response to “Benefits of Yahoo-Google Partnership”

  1. JT on July 4th, 2008 2:04 am

    Yahoo just subscribed to Adsense!

    Anyway, I believe that the Adwords platform won’t replace Pamana unless Yahoo is in a much weaker position than now. Yahoo is still a big entity with some money to correct their weaknesses.

    Why would Yahoo want to share their revenue on the popular keywords? What will they do with their analytics purchase if that happens?

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