Yahoo and Google Partner Again : Serving AdWords in Yahoo Results

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Is the end of Yahoo Search Marketing near? Yahoo has announced that they are running limited tests of AdWords sponsored search ads (or Google AdSense for Search, which are AdWords served in the search results of non-Google search properties) beside Yahoo Search results.

Yahoo says that the test will apply only to traffic from the site in the U.S. and will not include Yahoo!’s network of affiliate or premium publisher partners, like the Newspaper consortium or other Yahoo partners. Yahoo says that the test is expected to last up to two weeks and will be limited to no more than 3% of Yahoo! search queries.

This test is a direct result to the Microsoft takeover attempt, even though Yahoo is not admitting it :

Yahoo!’s board of directors is exploring strategic alternatives to maximize stockholder value, including exploration of potential commercial business arrangements. The Company noted that the testing does not necessarily mean that Yahoo! will join the AdSense for Search program or that any further commercial relationship with Google will result. The Company further stated that it would not comment on the nature or timing of any potential relationship.

Back to the beginning of this post. Will Yahoo dump Yahoo Search Marketing and replace it with Google AdWords?

I seriously doubt that Yahoo will throw away or sell their search marketing technology, which outdates Google AdWords in its core history. Yahoo will more than likely use Google AdWords to power the terms or industries which Yahoo is not bringing in as much revenue for.

OR Yahoo will probably serve Yahoo Search Marketing results for the first sponsored search results, then supplement secondary results with AdWords, in a similar fashion that has done with Google or Microsoft did with supplementing adCenter ads with Yahoo.

This isn’t the first time Yahoo and Google have worked together, since Yahoo gave Google its start more or less when the company let Google power Yahoo search results earlier this decade.

Hopefully more news will come out of this relationship as it develops, especially if Yahoo can generate much and a response from Microsoft on this Google Yahoo partnership is eagerly expected.

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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  • Web Design Kris

    Wow, it seems to me no matter what scenario plays out, we are looking at some serious changes in the search marketing world, it will be interesting to see those cashing in on the early opportunities this will provide .

  • Jaan Kanellis

    MSN has already responded:

    “Any definitive agreement between Yahoo! and Google would consolidate over 90% of the search advertising market in Google’s hands. This would make the market far less competitive, in sharp contrast to our own proposal to acquire Yahoo! We will assess closely all of our options. Our proposal remains the only alternative put forward that offers Yahoo! shareholders full and fair value for their shares, gives every shareholder a vote on the future of the company, and enhances choice for content creators, advertisers, and consumers.”

  • Gab “SEO ROI” Goldenberg

    Yahoo should sell out for the sake of the web and for the sake of having a viable competitor to Google. Yahoo search + MSN dollars = viable competition.

  • Dave

    It makes me wonder how long Yahoo can stay in the game.

  • CS Thompson

    Who would have ever imagined this 5, no 3, no 1 year ago?

  • Agilis Search Marketing

    To me the trial is a little futile. Many others commented that even if it had a positive result any long term relationship might cause antitrust issues. I for one simply do not understand why Yahoo insights MSFT’s bid as undervaluing the company. They bid a heft premium over the market valuation of the shares. I am not a shareholder of Yahoo, but would be upset by the bid rejection if I did own shares.