Yahoo now has deals with both Microsoft (Bing) and Google (yes, again) to display search results and paid search ads on its platforms.
How did this come about? Yahoo is locked into a deal with Microsoft which requires that a minimum of 51% of all search ads shown on desktops are from Microsoft. This does however open opportunities for other search ads, including those on Yahoo’s own mobile platform. And that’s left Yahoo free to display Google search ads and search results for the remaining portion of Desktop and for mobile search.
You will be forgiven for thinking back to those teenage years of opportunity and romance when you take a closer look at the search relationships Yahoo has been in of late. You remember — the days when you had crazy thoughts, not quite sure what to do or which opportunity to take so, damn it, sometimes you just went for all of them.
Picture Yahoo’s inner turmoil and imagine the monologue:
“I just don’t know what to do. Whenever I’m single, life is a disaster so that just isn’t an option. I need someone I can rely on and I want to be in a relationship that is healthy and hopefully long term. So who do I choose?
Bing — In a certain light, sexier, younger, and getting more friends all the time. But still a nobody. Does Bing need me more than I need Bing? Will I be noticed if I choose Bing or fade away if Bing does too?
Google — I’ve been there before and it didn’t work out. But Google is still in with the “In Crowd” today. Everybody knows Google and I could learn so much. But would I just be to Google what Bing is to everyone else? Does Google actually care about me or will I just be another plaything? Will Google dump me when someone else comes along? Google might be mean to me and I will probably look silly to my friends but if I try really hard all Google’s friends might like me too and then I won’t need those friends any more.
Maybe, just maybe, I could have it all…
What if I only saw Bing half the time? Google wouldn’t care and I could put up with Google using me for a while if I became one of the cool kids again. Google might see how amazing I really am or even maybe I would be so cool I wouldn’t even need Google any more…”
Why should you care?
Just like it is in retail, any war is good for the consumer. Consumers using Yahoo for search may not even notice a visible difference between results from Bing and those from Google unless one or the other gives them more relevant search results.
The Yahoo/Google deal also covers New Zealand and Australia and will have an impact on campaigns here. Europe is a notable exclusion, most likely due to the anti-trust law suit currently in play.
Yahoo may suffer in the long term by playing both sides. However, advertisers running AdWords campaigns should now start reaching a somewhat larger audience.
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Glenn is a Partner and Senior Consultant who has had a very successful career building growth companies in the private equity arena. He has a wealth of experience in both the digital space and strategy development. Prior to becoming a partner in SureFire Glenn built one of the largest digital teams in New Zealand for a NASDAQ listed global online marketing company & Google's largest premium partner.
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