Yahoo Revives Ad Partnership With Google - InformationWeek
Government // Mobile & Wireless
02:55 PM
Connect Directly
Ransomware: Latest Developments & How to Defend Against Them
Nov 01, 2017
Ransomware is one of the fastest growing types of malware, and new breeds that escalate quickly ar ...Read More>>

Yahoo Revives Ad Partnership With Google

Five years after a failed attempt, Yahoo and Google try once more to set up an ad partnership.

10 Best Business Tools In Google+
10 Best Business Tools In Google+
(click image for larger view and for slideshow)
Google and Yahoo have reached an agreement to show Google ads on Yahoo Web pages and co-branded websites, a partnership that the two companies tried five years ago, only to be driven apart by fear of antitrust action.

The deal will let Google serve contextual ads from its AdSense advertising partners on Yahoo's unsold inventory of content. What's different this time is mobile, specifically the inclusion of Google's AdMob service. In 2008, mobile advertising was in its infancy. In 2013, mobile advertising is a top priority for online marketing and technology companies.

"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," Yahoo said in a statement.

[ Google is trying to beef up its ad machine. Read Google Updates AdWords For Mobile Era. ]

Google issued a similar statement in June 2008, but by November of that year, the deal was off. The company's chief legal officer, David Drummond, said in a blog post at the time that after four months of regulatory scrutiny, government regulators and some advertisers still had concerns about the deal and that the two companies cancelled the agreement to avoid a long legal battle and damaging relationships with other partners.

Two years later, Microsoft entered into a search advertising partnership with Yahoo, something of a consolation prize since Microsoft had tried unsuccessfully to buy Yahoo in early 2008.

But Yahoo hasn't prospered with Microsoft running its search ad business. Last July, during Yahoo's Q2 2012 earnings call -- Marissa Mayer's first day as CEO after leaving Google -- Yahoo CFO Tim Morse acknowledged that "we're unable to report progress by Microsoft on closing the gap in marketplace [revenue per search]." In other words, Yahoo wasn't earning as much revenue per search with Microsoft as it could in theory have earned with Google.

Since then, Yahoo's stock has risen, a sign Mayer's stewardship of the company is having a positive effect. Her renewal of ties with Google should help Yahoo further, and this time government regulators are unlikely to intervene, given that Google has just settled with the Federal Trade Commission to end the agency's antitrust investigation.

Asked whether reaching a deal with Yahoo was easier with Mayer, a former Google executive, at the negotiating table, a Google spokeswoman said only, "We work with a number of top publishers to help them monetize their content through AdSense for Content and AdMob. We're thrilled to now include Yahoo."

Comment  | 
Print  | 
More Insights
Newest First  |  Oldest First  |  Threaded View
How Enterprises Are Attacking the IT Security Enterprise
How Enterprises Are Attacking the IT Security Enterprise
To learn more about what organizations are doing to tackle attacks and threats we surveyed a group of 300 IT and infosec professionals to find out what their biggest IT security challenges are and what they're doing to defend against today's threats. Download the report to see what they're saying.
Register for InformationWeek Newsletters
White Papers
Current Issue
2017 State of IT Report
In today's technology-driven world, "innovation" has become a basic expectation. IT leaders are tasked with making technical magic, improving customer experience, and boosting the bottom line -- yet often without any increase to the IT budget. How are organizations striking the balance between new initiatives and cost control? Download our report to learn about the biggest challenges and how savvy IT executives are overcoming them.
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Flash Poll