Effects of Google - Yahoo! Ad agreement on the Industry

Hello Readers,

This is my first post and I hope you all like it.

Last week we all heard of the Non- Exclusive Ad agreement between Google and Yahoo!, which will give Yahoo! access to Google’s Adsense for Search and Adsense for Content. This Ad agreement also talks about interoperability between IMs of both Search Engines.

Now, we do know that Google has similar agreements with Search Engines like ASK and AOL but these two are not amongst Google’s fierce competitors. In my opinion this is Google’s innovative way to dominate the Search Marketing Industry.

I think it won’t have a great monetary impact on Advertisers or Publishers. The user experience essentially will remain the same. However, the future of Yahoo! in the Search Marketing Industry looks shady.

This deal will essentially eliminate competition between both the players. However, users now will find the same ads everywhere they go.

Here is an excerpt from Google’s official Blog Post on this Agreement.

• Consumers will see more relevant ads when they are looking for information and browsing the web. And with interoperability between IM services, users will have easier access to even more of their contacts.

• Publishers currently in the Yahoo! Publisher Network will benefit from Google’s advertising technology, potentially increasing the revenue they earn from their sites.

• Advertisers will have new ways to reach their target customers online more efficiently.

So you see, these are the benefits of the deal as per Google. I would be really happy to know your views on this Ad agreement. Please feel free to post comments or ask questions.