Google and Yahoo tread a fine line over the involvement of the dominant search advertising company with Microsoft's desired takeover target, Yahoo. An announced test of AdSense for Search from Google in a thin slice of Yahoo's search pages was a necessarily limited effort.
Microsoft promptly complained of Google's involvement. To Microsoft, any tie-up that would hand all of Yahoo's paid search to Google puts over 90 percent of the search ad market in Google's lap, Microsoft's general counsel Brad Smith observed.
Google's appeal to Yahoo, said the New York Times, comes from the vastly greater return Google's ads may provide. "By Yahoo’s own projections, Google earns on average 60 percent to 70 percent more for every search than Yahoo," the report said.
Suggestions made in the past called for Yahoo to give paid search to Google, and enjoy the greater profitability. Google's adherence to ad relevance to the searches people make turned the search company into a multi-billion dollar giant.
If anything, Yahoo's failure to mimic Google's approach speaks volumes about its management and its missed opportunities, especially over the last couple of years where Yahoo's stock fell while development of a more relevant contextual ad system took place. Too little, too late, and too much of a bargain for Microsoft to pass by.
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Comments
It makes you wonder
It's almost like yahoo is resisting success in the search arena.
Yahoo is thrashing around
Yahoo is thrashing around but in the end will be bought up. This demonstrates a lack of leadership over there. Had they already done this or had it in the works before MS offer then they might have hope.
just shows how much higher
just shows how much higher bids are in google.
The difference in profit
The difference in profit between Google and Yahoo just shows the difference in quality! Google can take the monopoly and keep it, it would be well deserved!
As an advertiser, I would also like some sort of monopoly
Or, in a way, limited monopoly, centralisation.
Currently, we have to log in to yahoo and google and make any kind of changes albet minor. Without a central system to manage ads, It's a very troublesome procedure. Knowing that Google and Yahoo are enemies just doesn't quite bring peace for us -- we don't know when our ads will appear and when it's going to dissapear another time.
Maybe MS can join the the panel of some "online advertiser protection associaion", if he's so unhappy.
Smarter business
It all comes down to better business. Google simply provides better ads, better ad mechanisms, and has a better internal structure that Yahoo., which goes hand and hand with company performance.
As a adsense publisher, I like the Monopoly
the online monopoly of google will get me more payment.
Amazing.
What kind of marketer are you? I see here self call marketers calling for Google monopoly. What type of morons are you people? Monopoly is not good! It will cut in your profits you morons! You'll be subjected to Google's moods and when they say "I'm going to raise the price on your minimum bids senoritas" whatta hell you going to do? Run to papi yahoo? Yahoo would be Google's girl! THINK! Competition is good for the marketer; monopoly is rope for your own neck! I'm behind Microsoft all the way.
Illegal.
Monopoly will be. Microsoft should be on the phone with the government like dried gum on a park bench.
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