Google, Yahoo disclosed terms of ad pact

Barry found this reported at Reuters, Google and Yahoo!! have disclosed parts of their ad pact. The details, which were filed with SEC, “take the unusual step of disclosing the contract governing the partnership, but leave out any financial terms, such as the revenue split on their deal.”

The article states that a number of people are upset by the possible partnership, especially since this will give the Google empire control of 90% of the search market. However, the article later states that Google and Yahoo wants to emphasize that this is a non-exclusive agreement “in which Yahoo is effectively contracting with Google to sell ads alongside a portion of its search results.” This positions Yahoo to focus on its stronger suits.

Forum discussion continues at WebmasterWorld, Source: SERoundtable

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One single comment

  1. Great Advertising News says:

    I think that the Google/Yahoo advertising pact will be bad for the advertising industry in general, regardless of how the agreement is worded. Ultimately ad prices will go up and publisher payments will decrease. Google will control a large share of the advertising market, so advertisers will see that a large percetnage of click volume is coming from Google, and minimal from Yahoo/MSN. It will not be worth their while to continue advertising with Yahoo/MSN, and will shift all of their advertising dollars to Google. Google in turn then will command a larger share of the market, and will naturally increase prices of ad, this is just basic economics. Also, publisher payouts will decrease since the other ad networks will have less ads, and less inventory to display, so publishers wouldn’t earn enough by showing their ads, then Google will have a large share of the publishing market, and the competitors will have dried up, so they will naturally decrease publishers payouts. Proponents of the deal, that say publoshers can turn to other kinds of advertising are wrong, since banner ad advertising doesn’t yield as much money, and users tend to view it as a distraction, while text ads are viewed as relevant content.