Yahoo allows Google display ads on websites (but not search)

08/02/2013

Yahoo! has struck a deal with Google to allow its mobile and display ads to appear on a selection of its websites, but not AdWords search ads.

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The non-exclusive deal will see Yahoo's website using Google's massive online advertising network to show marketing messages related to the content that's being perused.

Yahoo’s properties include Yahoo News, Answers, Sports, and Mail.

The Google ads will appear on both co-branded and Yahoo! sites, and will include both Google’s AdMob and AdSense for Content. As a result, Google will have more places around the Web to plant its advertisements, and Yahoo! will have more advertisements to display.

Yahoo managed to stem three consecutive years of losses in 2012 under new CEO (and former Google executive) Marissa Mayer.

The deal will see Google retain part of the revenue generated from the ads shown on its partners' sites. The revenue split with Yahoo wasn't specifically disclosed, but Google has previously said that website owners that display the kind of ads covered in this agreement usually get to keep 68 percent of the revenue.

No search ads

Yahoo will not be using Google’s AdWords sponsored search result system, due to a partnership already in place with Microsoft’s Bing, formed as part of a long-term deal signed in 2009.

Yahoo aligned itself with Microsoft Corp. after a proposed partnership with Google in 2008 unraveled when the U.S. Justice Department threatened to file a lawsuit to block it.

The Justice Department contended that Google would have been able to use its dominance of Internet search to thwart competition if it were able to expand its reach on to Yahoo's popular website.

Last month, CEO Mayer said that because the company doesn’t make hardware, a browser, social network, or other such things, it is able to form strong partnerships with other companies. She said that forming relationships and partnerships is one of its main focuses.

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