I'm an advertiser and i'm

Tom — Mon, 29 Sep 2008 14:46:18 -0700

I'm an advertiser and i'm worrying about rising prices too.
Thanks for article.
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Google could net $1b from Yahoo deal -- advertisers worry about rising prices

Jordan Golson — Mon, 16 Jun 2008 16:11:31 -0700

We can only wonder what Carl Icahn thinks about all this post-Microsoft, Google deal-making. AdAge estimates Google could raise $1 billion in revenue from its search-ad deal with Yahoo -- and increase prices for some advertisers.

According to eMarketer, Google holds a massive 76.4 percent dollar-share of search-ad spending, leaving Yahoo with a diminutive 7.3 percent. In April, ComScore says Google nabbed 61.6 percent of search traffic, with Yahoo left holding just 20.4 percent.

Yahoo's big draw has been cheaper prices for search ads compared to Google. But Yahoo has yet to determine how much the pricing will change for advertisers under the new agreement. The deal isn't exclusive, but because Google's revenue per query is higher than everyone else's, it seems logical that Yahoo will prefer Google's ads to its own.

Even though Google doesn't provide ads for all search queries on Yahoo, GOOG's share will still grow significantly. As to Yahoo's lower prices, only time will tell if those stay lower than Google's. Sue Decker, Yahoo's president, hinted that the deal will be used on Yahoo's less popular search terms rather than ones in high demand -- which would be good for advertisers, Yahoo and Google.

The Industry Standard - Google could net $1b from Yahoo deal -- advertisers worry about rising prices - Comments

I'm an advertiser and i'm

Google could net $1b from Yahoo deal -- advertisers worry about rising prices