As of 1 July 2006, MSN will not longer display Yahoo! Search Marketing search results on its sponsored links. Yahoo! expect that MSN will continue to display Yahoo! Search Marketing Content Match listings and Sponsored Search listings in US and non-US markets respectively, beyond June 2006. However, Yahoo! announced that the Search traffic to its advertisers will not drop.
The first sign of the escalated competitiveness between the two search giants was last year when MSN Adcenter was launched in France and Singapore as a beta. Adcenter is a PPC advertising interface that was invented and is very similar to Yahoo! Search Marketing and Google Adwords. MSN Adcenter provides features such as geo-targeting and day parting that Yahoo! Search Marketing currently does not have, but it is still a long way behind Google Adwords.
Yahoo! Search Marketing is expected to complete its upgrade by Q3 this year, and become comparable to Google Adwords. Currently many PPC experts believe that in terms of click-through rate, Google Adwords is still the best, though some believe that Yahoo! Search Marketing tends to have good conversion rates in some specific categories.