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Google-Yahoo Ad Pact Means Keywords Could Cost More

Should the Google-Yahoo deal comes to pass, businesses could find themselves paying more for their search advertising.Twenty-two percent more on average, according to software maker SearchIgnite, which did an apples-to-apples comparison of the cost per click of running the same keyword for the same advertiser in the same position on the page across each search engine. (Registration is required to access the whitepaper.) Though pricing varied depending on the type of keywords purchased and their rankings, the overall finding was the expectation of higher keyword prices. "Most marketers will see their overall costs for search advertising across the Yahoo! network increase, and will need to adjust their search strategies accordingly," said SearchIgnite president Roger Barnette in a statement.

A Senate Judiciary subcommittee will be discussing the Google-Yahoo deal during a hearing today. Announced one month ago, the pact calls for Google's ads to appear alongside Yahoo's search results and on some of its Web properties.The New York Times

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