What about Yahoo! Advertising?
At the end of July 2010, Yahoo! announced the first part of the merger agreement between Yahoo! and Bing which means that starting in the Fall of 2010, Yahoo! search results will now be showing paid advertising from Bing Advertisers. What does this mean for Yahoo! advertising? As the spots fill up on the first page search results how does Yahoo! turn a profit? Last July I wrote an article on the Yahoo Microsoft Merger and in the article was discussed that this would happen, but Yahoo! would receive up to 88% of the profit on the advertising as part of the agreement. This is more then likely hike up the pricing for Bing advertising since the advertisers will now have access to both second and third place search engines via one advertising portal. This is going to improve ROI for both companies and get almost 20% of the search share to the advertisers that still advertise with the companies. In my eyes, Yahoo! just signed up for Microsoft Ad Sense, their new source of revenue! So is this merger a competition of search share, or revenue share. Concentrate on the user and worry about their needs in what they are looking for. Improve the already terrible algorithm to incorporate relevant search results at the top of search results rather then spamming the page with the highest paying advertiser. Thats how people get scammed!
Google’s Take on the Yahoo Bing Merger
Google has over 80% of the search market, which means they get 80% of the customers that are looking for something on the Internet. That is higher chance at success and failure for advertisers with a limited online marketing budget. Regardless, they have 80% which doesn’t really make them scared, they have done this before with the acquisition of Ask.com advertising rights and search results and AOL.
