Yahoo and Google Broker Paid Search Deal

Yesterday afternoon the news of a new deal between ruling Internet companies Yahoo and Google came out  in a press release and  on a Google blog post.  Essentially the new deal enables Yahoo! to use ads provided by Google, to insert in their ad network. Google ads would be displayed sideways the Yahoo search results and Yahoo would also get acces to some Google web properties in the US and Canada.

Both companies stress the fact that the deal is non-exclusive, meaning third parties are also welcome, and that they remain competitors in the online search business.  The deal only covers paid search and content matching, no algorithmic search.

Basically what Yahoo is going to do with the Google ads is a ‘fill-up’ strategy, in the fields where they have no ads from themselves they will add ads from Google. Yahoo will also continue to favour its own ads and announces full authority in deciding the queries for which it will count on Google, as well as the extent to which Google ads will be shown.

The least we can say is that Yahoo is pushing through it’s open strategy, because besides the paid search deal,  the IM services of Yahoo and Google will also be fine tuned to each other. The interoperability of the IM can only be beneficial for the users and the management of their contacts, reads the Google blog. We are happy to believe them.

Finally for Google there’s nothing but good deriving from the deal. Google advertisers see the ad network (and the number of potential viewers) increasing, Yahoo publishers will benefit from Google technology and they can show us again how hard they are working to make life better for consumers and advertisers.