Friday, June 13, 2008

Yahoo teams up with Google: What it means for online rivals and customers

After unsuccessfully trying their hand at advertising ads like google adsense, Yahoo have irked a deal with Google to use the latter search engine's advertising technology on their own portal (in the US and Canada). This announcement comes weeks after Yahoo failed to accept the bid Microsoft had placed to buy the company.

The deal will be quite lucrative and is likely to generate $800 million every year, starting from this one. Google ads will most probably appear alongside Yahoo search results just as they do along with Google search results (but only in US and Canada searches).The deal is on for 3 years but could swell to 10 years if Yahoo decide to renew the contract. (Check the official announcement from google too!)

This partnership will benefit advertisers and customers and also Yahoo, but might hamper traditional rivals and competitors. A Google-Yahoo deal with spell danger for all online sites like Microsoft, Facebook, AOL and others. This is going to kill competition and create a virtually competition less market in the online advertising industry if the 2 biggest stalwarts join hands. Nevertheless, Yahoo users and visitors will enjoy high search advertisement technology. Finally, such a Yahoo-Google partnership will benefit all publishers, web developers, site owners and advertisers by providing consistent as well as updated advertising technology to the above.

In the end, Consumer is king. Therefore we will enjoy better ads, better service and obviously better search.

Tell me what you think about this deal here.

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