Yahoo announced its Q3 earnings on Tuesday, and also took the opportunity to reveal that it has entered into a search and advertising deal with Google. This isn’t the all-encompassing deal it was aiming for years ago ahead of its “search alliance” with Microsoft. Nor does it have the exclusivity that the Yahoo/Microsoft alliance had until recently. Google now just gives Yahoo more options, and exists in addition to Yahoo’s relationship with Microsoft.
Yahoo said in a press release, “In October, the Company reached an agreement with Google that provides Yahoo with additional flexibility to choose among suppliers of search results and ads. Google’s offerings complement the search services provided by Microsoft, which remains a strong partner, as well as Yahoo’s own search technologies and ad products.”
The deal expires at the end of 2018 as long as it gains approval from the U.S. Department of Justice and regulators in India and the European Union.
An SEC filing about the deal explains:
Pursuant to the Services Agreement, Google will provide Yahoo with search advertisements through Google’s AdSense for Search service (“AFS”), web algorithmic search services through Google’s Websearch Service, and image search services. The results provided by Google for these services will be available to Yahoo for display on both desktop and mobile platforms. Yahoo may use Google’s services on Yahoo’s owned and operated properties (“Yahoo Properties”) and on certain syndication partner properties (“Affiliate Sites”) in the United States (U.S.), Canada, Hong Kong, Taiwan, Singapore, Thailand, Vietnam, Philippines, Indonesia, Malaysia, India, Middle East, Africa, Mexico, Argentina, Brazil, Colombia, Chile, Venezuela, Peru, Australia and New Zealand.
Under the Services Agreement, Yahoo has discretion to select which search queries to send to Google and is not obligated to send any minimum number of search queries. The Services Agreement is non-exclusive and expressly permits Yahoo to use any other search advertising services, including its own service, the services of Microsoft Corporation or other third parties.Google will pay Yahoo a percentage of the gross revenues from AFS ads displayed on Yahoo Properties or Affiliate Sites. The percentage will vary depending on whether the ads are displayed on U.S. desktop sites, non-U.S. desktop sites or on the tablet or mobile phone versions of the Yahoo Properties or its Affiliate Sites. Yahoo will pay Google fees for requests for image search results or web algorithmic search results.
In April, Yahoo and Microsoft announced an amendment to their search partnership, saying they “reaffirmed commitments made by both companies in the original 2009 agreement, while implementing changes to keep the partnership strong and productive”. Both companies, the announcement said, are “committed to maximizing the alliance.”
The changes gave Yahoo increased flexibility to enhance its own search experience on any platform. The partnership is non-exclusive for both desktop and mobile. Yahoo would continue to serve Bing ads and search results for most of tis desktop search traffic, it said.
They said the changes also offered an increased “agility and sales focus.” Microsoft would be the exclusive salesforce for ads delivered by its own Bing Ads platform, and Yahoo would continue to be the exclusive salesforce for its Yahoo Gemini ads platform.
GeekWire shares a quote from Microsoft on the Yahoo’s Google news: “We remain committed to the Yahoo syndication partnership and will continue to serve the majority of Yahoo traffic as outlined in our contract extension. Yahoo is a valued partner and we look forward to continuing to serve our advertising customers through the Bing Ads marketplace.”
Obviously a deal would mean that businesses using Google for advertising and optimizing for Google search stand to gain increased visibility across Yahoo properties where it chooses to show their ads and content. It will be interesting to see how Yahoo uses Google in conjunction with Bing and its own stuff.
Image via Wikimedia Commons