Yahoo announced on Tuesday a three-year search advertising agreement with Google, the King of Search Engines. The deal went into effect on October 1st. However, there are a few steps it may have to take before it gets approved. Let us break it down for you.
So What’s the Deal with the Google-Yahoo Deal?
Yahoo retains its search and ad flexibility. In its Third-Quarter report, Yahoo “reached an agreement” with Google, providing Yahoo with additional flexibility to choose among search results and ad suppliers. Yahoo will be able to show Google search listings and ads on both desktop and mobile.
Yahoo still has a deal with Microsoft. Remember the news back in April that Yahoo and Microsoft renewed their deal? The one where Bing’s search ads would Bing up on Yahoo’s search results is still ongoing. That’s states that “Google’s offerings include the search services provided by Microsoft, which remains a strong partner, as well as Yahoo’s own search and ad products.”
Yahoo’s deal with Google only accounts for roughly half of its ads. Search Engine Land’s Danny SullivanLand’sds reported that the renewal with Microsoft only accounted for 51 percent of Bing ads showing on Yahoo desktop searches. This leaves Yahoo with 49 percent of whatever ads it wants, whether powered by its own ad system or a third-party, like Google.
Yahoo is free to do whatever it wants on mobile. Furthermore, you might have noticed that Yahoo’s deal with Google says nothing about a mobile-only deal. This means Yahoo could potentially show more Google ads that exceed the 51 percent agreement it has with Microsoft’s Bing ads. Microsoft-Yahoo deal excludes Europe; more on this in the next section below.
Yahoo doesn’t have to guarantee anything to Google. According to the Form 8-K filing, Yahoo does not have to report search queries to Google. In addition, it gets a percentage of all Google ads shown on Yahoo. However, Yahoo can’t use Google site listings and display ads without paying Google. This would effectively prevent Google from being used as a free service for Yahoo.
Why the Google-Yahoo Deal Might Not Go Through
Although the deal went live on October 1st, the Department of Justice might not approve it. A similar thing happened when another Yahoo deal with Google was shut down in 2008, citing it as “bad on competitive grounds.”
Regarding this “current deal, ” Google is undergoing an antitrust case in Europe and India for a similar reason. That’s why an agreement states that if either the EU or India objects to the deal, it could be closed.
While things seem to be turning around for Yahoo with this latest agreement, it could come of it.
But if you’re wondering how real estate could help or hurt your business rankings, let’s talk.
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Dalton Grant, a seasoned veteran with over 15 years in the Internet Marketing industry, brings extensive experience and dynamic leadership to SEO Inc. He initially served in various roles within the company, displaying his multifaceted talent and versatile expertise. Today, he holds several critical roles at SEO Inc., including Senior SEO Analyst, Linking Director, Brand Specialist, and Google Link Penalty Guru.
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