Google & Yahoo Ad Deal Set for October Launch

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Google CEO Eric Schmidt confirmed yesterday that despite pressure from the US Justice Department, the Google Yahoo advertising partnership will proceed with its scheduled launch of early October.

“We are going to move forward,” Schmidt said Thursday (as quoted by the Seattle Times). “We are in the process of talking to the government. They’ve not indicated one way or the other how they’re dealing with us. We always worry a little bit, but we think our arguments are pretty strong. Yahoo has made it very, very clear they’re going to take the best parts of their network and ours and combine them.”

The advertising partnership which would serve Google AdWords powered sponsored search ads along with Yahoo Search Marketing ads in the Yahoo Search results pages along with other forms of sponsored search contextual advertising throughout the Yahoo network is expected to bring Yahoo a mighty fine infusion of $800 million a year in new advertising revenue, something Yahoo and its stock holders seem very happy about.

Under the agreement, Google AdWords ads will be shown in Yahoo Search results when their cost per click value is expected to be higher than Yahoo Search Marketing ads, after a revenue split between Yahoo and Google. The deal expands Google’s ad distribution tremendously and also gives Yahoo the jolt it may need to keep on going. Ironically, it was Yahoo which gave Google search technology its start in the limelight when it licensed Google to power Yahoo Search about eight years ago.

Loren Baker
Loren Baker is the Founder of SEJ, an Advisor at Alpha Brand Media and runs Foundation Digital, a digital marketing strategy & development agency.
Loren Baker
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  • Baccarat Tilt Man

    Interesting… yahoo didn’t want to join with microsoft but yes with google?

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