RSSYahoo to test running Google ads alongside its search results
By Scott M. Fulton, III | Published April 9, 2008, 5:24 PM
In what appears to be a very carefully considered, strategically phrased statement this afternoon, Yahoo said it will actually test carrying Google's ads on its own pages, calling the test a "strategic alternative." Microsoft isn't happy and quickly responded.
For an upcoming two-week period, the date of which was not announced, Yahoo said that it will imbue up to three percent of readers' search queries with ads generated using Google's AdSense for Search service. That service was intentionally created to give other Web sites a mechanism for its users to search the Web using Google, with AdSense ads appearing next to the results, and with sites sharing in Google's revenue.
As it appears now based on Yahoo's limited description, some users will notice AdSense ads accompanying Yahoo search results -- which is not exactly what Google intended. Yahoo did not state whether it would claim a share of ad revenue like any other AdSense for Search customer, nor did it say what role, if any, that Google is playing in the test. For its part, Google has yet to comment.
However, this afternoon's statement was accompanied by this paragraph that, despite its lack of direct information, remains so telling:
"As previously announced, Yahoo's board of directors is exploring strategic alternatives to maximize stockholder value, including exploration of potential commercial business arrangements. The Company noted that the testing does not necessarily mean that Yahoo will join the AdSense for Search program or that any further commercial relationship with Google will result. The Company further stated that it would not comment on the nature or timing of any potential relationship."
The paragraph did not have to state alternatives to what, or to even invoke the word "Microsoft," so it's obvious that this sentence was added to serve as an indicator that the test could lead to an extension of the relationship between Yahoo and Google.
The statement purposefully says the company can say no more, thus giving analysts and observers all the tools they need to begin rampant speculation -- as they have already done.
Microsoft quickly issued a response to the news, calling into question Google's control of the advertising search market if such an agreement with Yahoo were to happen.
"Any definitive agreement between Yahoo! and Google would consolidate over 90% of the search advertising market in Google's hands. This would make the market far less competitive, in sharp contrast to our own proposal to acquire Yahoo! We will assess closely all of our options," said the statement attributed to Microsoft General Counsel Brad Smith. "Our proposal remains the only alternative put forward that offers Yahoo! shareholders full and fair value for their shares, gives every shareholder a vote on the future of the company, and enhances choice for content creators, advertisers, and consumers."
20 years ago, Microsoft decided they wanted to control everything that happens INSIDE computers. Now, 20 years later Google decided they want to control everything that happens OUTSIDE computers. That's the simple ecuation. Did Microsoft achieve its goal? yes. It's Google achieven theirs? You bet! Oh, and, what about Yahoo? Mmmm.. Yahoo is like a tech limbo it's not white, it's not black, it's... it's it's nothing, really (on the long term).
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|This demonstrates the fear that Google has of a MSFT-Yahoo combination. That alone is reason for MSFT to go forward.
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|From the sound of it, it would appear that it is yahoos idea to run this test not google, in fact google was very reluctant to want this to happen for they know that it may spark anti trust problems....GOOGLE FEARS NOTHING!!!
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|The OS is just a means to an end and with the iPhone and other options, Windows isn't going to be the only OS in the future. I think it's entitely possible that the MAC has the potential to capitalise on the success of the iPod, iPhone & iTouch. IBM had the PC market sewn up and lost it all - if MS don't get their foot in the door with Yahoo then they're going to lose out big time.
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|There is more than Windows now. Until there is a better OS with better compatibility, people will not go any way.
FYI: IBM lost the market because they believed hardware is king.
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|Exactly. And MS may lose out if they don't get Yahoo because they believe Windows is King. In the future Windows may not be King and if they lose the Yahoo deal they run the risk of becoming another IBM. That was my point.
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|Nice "White Knight" image for this story on the front page, Scott :D
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|The ones who will notice are the ones that are behind. I use opera and have google ads blocked. Do yourself a favour, odds are whatever browser you have has some form of adblock functionality. USE IT!
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|Why they can't have the 90% of the market? Microsoft has that for the OS market, and don't tell me it's only because they have a good OS. ;)
In any case, never used Yahoo and never will. :D
EDIT: and I never see ads. Just use Adblock Plus for Firefox. Pages are quite different and really usable with it. :)
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|You *DO* realize that Betanews gets most of its revenue from those very ads you block, don't you?
So your posting about how you block ads right here is a bit impolite, I think
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|I doubt it. They probably get the most revenue from the shareware that published here.
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|Really? I didn't think it would cost to list since this content is driving traffic. Not sure though...
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|"If you can't beat them, join them." Yahoo is slowly conceding defeat in all areas to Google. This is also what we are seeing in the Windoze world, a slow death to Windoze at the hand of the Mac. :)
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|What does it has to do with Windows vs Mac or OSX or whatever it want to call itself?
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|On the world known as Earth there is no slow death to windoze at the hand of the mac. You may not like it here, i'd stick to your world if I was you.
The market expands and companies get a peice of the pie, some larger than others but the userbase for all is certainly not shrinking by a long shot.
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|Well, since Yahoo should be rename Yucko, I could care less if they want to get in bed with google. At least they can fly on more fancy jets.
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|I think we should boycott the lot of them. As many experts on this forum have attested giving free stuff in exchange for displaying ads is pure evil.
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|Wow. Let me get this straight, you say giving free stuff in exchange for displaying ads is evil? Well, the alternative is to charge for the stuff. How many pay sites do you subscribe to? While there may be a handful of people out there willing to produce websites and content for nothing, most people need to get paid for their work in order to support themselves and their families. Remove ads from the internet and watch the quality of sites and services dwindle. It amazes me that people think all this stuff just "happens" and it should all be free so they can sit around and surf all day and not be offended by the horror that is advertising. Grow up and get some perspective.
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