8 replies to this topic

[Scottie]

http://www.betanews....arch/1213311252

Late Thursday afternoon, the news came from Google that it will indeed become a full-time provider of AdSense advertising for Yahoo's search pages, and the two companies' IM protocols will become interoperable.

Interesting stuff...

[ScottSalwolke]

From what I read Google will only provide ads for certain keywords or search terms. I'm still confused as to how this works and how Yahoo benefits from it, as they will still have their own pay per click program. Is this the result of their layoffs?

[lisety]

I heard that as well, but what does it all mean and how will it affect us mortals

[Randy]

I suspect it has as much to do with the Microsoft offer for Yahoo as anything else. Even though it apparently doesn't lock Yahoo into any minimum level, if one believes the totality of the statement. So that wouldn't stop MS. But giving better financial performance to Y! investors may make them think twice about a sell out to Microsoft.

[nethy]

Reading between the lines I thought it meant that if, for a given keyword, there is a big gap between what adwords advertisers are bidding and what YSM advertisers are bidding, then Yahoo will run (how many?) Adwords ads.

I could be wrong.

The effect on advertisiers should be:
-nothing (for keywords that don't trigger this)
or
-Increased YSM competition & increased Adwords impressions availability.
Maybe very minor decreased competition.

[1dmf]

It sends a shiver down my spine to think Y! is serving up G! ads, I for sure won't be using Overture for Advertsing again, we've closed our accounts.

Reading between the lines I thought it meant that if, for a given keyword, there is a big gap between what adwords advertisers are bidding and what YSM advertisers are bidding, then Yahoo will run (how many?) Adwords ads.

It should be irrelivant what G! customers bid for keywords on the Y! network, the fact that it now does, means Y! have lost their independence and probably won't be long before they loose all their customers!

[muzikfr3ak]

is yahoo running on a loss or something??

[Zishan Ahmed]

Yahoo is not running on loss, it is something that the big player of the game wanted to get an upper hand on Y.

[nethy]

From what I read Google will only provide ads for certain keywords or search terms. I'm still confused as to how this works and how Yahoo benefits from it, as they will still have their own pay per click program.

The idea is that bids on Adwords tend to be higher then bids on Yahoo. Adwords may have 10 bidders over $2 for a term whil Yahoo have a few over $1 and trail down to the $0.25 mark for the lower bidders. This means that the average value to them of a particular search is less then it is on Google. So by putting up Adwords ads & splitting the difference some way they can both gain. The resulting rise in competitiveness on their own platform will also be a plus.

imagine these SERP ads bids
Google
$2
$1.75
$1.6
$1.5
$1.4
$1.3
$1.25
$1.1



Yahoo (before deal)
$2
$1.25
$1.1
$1
$0.75
$0.60
$.50
$.30
$0.25

Yahoo (after deal)
$2
$1.75
$1.6
$1.5
$1.4
$1.3
$1.25
$1.25

Also some of their low bidders might have raised their bids to get the same level of traffic as before.

Is this the result of their layoffs?

Not sure about the layoff part but I can't see how this is cost saving to Yahoo. I haven't heard that they are ditching or scaling back their own program.