February 7, 2013
Yahoo Teams Up With Google, Gets Ads For News Sites
Michael Harper for redOrbit.com — Your Universe Online
Last year, Yahoo´s board of directors hired former Google employee Marissa Mayer to work as their CEO, the third CEO for the company within 12 months.
“At Yahoo!, we´re focused on doing everything we can to make the user experience inspiring and engaging. One way we do that is by providing relevant and well-targeted content -- whether that be editorial or advertising content,” reads the official blog post announcing the new partnership.
“Today, we´re excited to announce that we recently signed a global, non-exclusive agreement with Google to display ads on various Yahoo! properties and certain co-branded sites using Google´s AdSense for Content and Google´s AdMob services,” reads the post.
In addition to the Finance and News portions of Yahoo, these new Google-driven ads will also run on the Automotive and Sports sections. This decision is likely part of Mayer´s commitment to get Yahoo users to spend more time at their most popular sites. This partnership with Google could help drive traffic to these specific sites, says Mark Mahaney, managing director at RBC Capital Markets in San Francisco, speaking to Bloomberg.
“I assume they wouldn´t be doing this is if they didn´t think they can better monetize their traffic,” said Mahaney.
The market so far seems to approve of Mayer´s decision as shares of Yahoo increased by 6.3 percent in extended trading after the announcement was made.
Google´s AdSense and AdMob services are used all over the web and are largely responsible for Google´s hefty earnings. Yahoo, on the other hand, has had some difficulty attracting advertisers to their Websites, even as more companies are spending more money on online marketing. As part of this agreement between the Silicon Valley companies, Google will take a cut of the revenue from these ads, the exact amount of which has not been disclosed.
“By adding Google to our list of world-class contextual ads partners, we´ll be able to expand our network, which means we can serve users with ads that are even more meaningful,” continued the blog post.
Yahoo has said their users shouldn´t notice any difference between the ads they see now and the Google-driven ads. Instead, the company has said these kinds of partnerships help them become more “flexible,” thereby allowing them to deliver better content to their users.
This isn´t the first time the two companies have discussed such an alliance, however.
Under the lead of former CEO Ross Levinsohn, Yahoo looked to Google to handle their “tier 1” display ads across their sites. Google´s DoubleClick service would have been used here, as it was said that other companies were too small or unable to handle the number of Yahoo ads.
Yahoo also has a partnership with another large search provider and Google competitor, Microsoft. It´s yet to be seen if this partnership will drive a wedge between Yahoo and Microsoft or if the three will be able to get along swimmingly.