Yahoo! & Google Team Up For Contextual Advertising

Yahoo! and Google have agreed to team up for Contextual Advertising. Yahoo has just lately finalized an international, non-exclusive contract with Google to show ads on different Yahoo! sites and specific co-branded sites using Google's AdSense for Content and Google's AdMob services. Google will start managing some of its AdSense display ads on Yahoo properties, and will become one of various ad systems Yahoo! uses to fill some of its pages. Now the two organizations will have a affiliation just like the one that Google has with online publishers: They provide Google entry to some of their unsold stock, and Google places small ads it operates on part of its advertisers.

Yahoo and Google had long talks about a more engaged ad tie in summer of 2012. That involved a situation where Yahoo would generally give over its ad serving features for all of its lower-priced ads to Google. Those discussions looked unsuccessful after interim Yahoo! CEO Ross Levinsohn was changed by Marissa Mayer. But since then Mayer has employed former vice president of Google's worldwide Partner Business Solutions group, Henrique De Castro as her chief operating officer.

It's worth wondering whether the AdSense ads will result in something bigger for Yahoo! or not? Yahoo has a long-term contract with Microsoft to manage its large search ad business. Marissa Mayer has openly mentioned her frustration with the way that partnership has proved unsuccessful for Yahoo. However, any really important bond between Yahoo! and Google would surely go through loads of regulating evaluation. Possibly the two organizations think what they are up to will not result in any issues in the US or Belgium.

Sara Gorman, a spokeswoman for Yahoo revealed that the ads will be displayed on Yahoo's web pages for finance, news, sports and autos. Yahoo stock increased 1.5 percent to $20.15 in long term dealing after the declaration of the new collaboration. eMarketer reported that Google is predicted to remain on top in the 17.7 billion U.S. dollars market for display ads this year, with 18% share, while Facebook will have 15% and Yahoo share will drop to 8 percent.

Refrence(s):
Yodel Anecdotal - http://ycorpblog.com/2013/02/06/contextual-advertising/
AllThingsD - http://allthingsd.com/20130206/coming-soon-to-yahoo-ads-from-google/
http://www.webpronews.com/google-and-yahoo-are-now-working-together-on-ads-2013-02
http://marketingland.com/yahoo-strikes-deal-to-run-contextual-ads-from-google-32799
http://www.sfgate.com/technology/article/Yahoo-teams-up-with-Google-on-ads-4258204.php