Yahoo and Google getting together!

[Elaine]

just seen it on BBC teletext - what's all that about then ?

[drivetowin]

Yeah, it's on the BBC website now - Yahoo are letting Google use 3% of their ad space:

BBC NEWS | Business | Google and Yahoo to share web ads

[gadget]

Its part of their defence strategy against the MS approach. News Corp (Murdoch) is also rumoured to be joing the MS bid. Yet another rumour puts Yahoo in bed with AOL. All on BBC Radio 4 this am so it must be true - lol!

[Qui Gon Jinn]

A naive , maybe desperate move by Yahoo unless they are hoping Google buys them out or MSN makes an improved offer. This plays directly into the hands of Google with less exposure for those who advertise with Yahoo & poss rising costs for advertisers via them too, where some may have previously found niches at reasonable costs, this potentially could lead to advertisers switching attention & moving more of their budget to Google, where Google could pull the plug anytime (even if a trial period) & leave Yahoo up the Swanny (Suwannee). It illustrates a weakness on Yahoo's behalf where short term gains (even if unsold ad inventory) on ad revenue (higher bids via Google) could be long term losses, especially if they fail at trying to call Microsoft's bluff.

[gadget]

Or .. it allows to see what increase (or decrease) in revenue Google's Adverts truly get - US analysts have been telling them that it could be as much as 25% more.

[chrisuk]

Its only a two week test and probably more strategic moving than anything else. Its like saying to Microsoft we have powerful pals also and this isn't over yet. Also this is only in the US and just on Yahoo I believe, not the YSM and YPN networks.

Were a Google relationship to continue there is obvious monetisation potential but it is still of concern where eventually it leads. Down the chain their are many businesses, partners and advertisers alike that depend on Yahoo for income, a Google liason could either be an opportunity or a disaster if Google ever got to push all the buttons.

But its all whistling in the wind right now, many possible outcomes, an all Google world or a Googlehoo is unlikely imho given the market dominance this would create. Recent Adwords fun and games shows just how much the industry needs competition and a range of decent ad providers, not just one big player. I admire the way Yahoo is trying to show its steel but I dunno if there will still be a fully independent Yahoo in 2009.

[tomj]

well said chris!

[ceetee]

Microsoft and News Corp taking over Yahoo, yes I like that. It's the only combined business that would have the cash and skills to end Google's near monopoly.