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Google and Yahoo agree search and advertising partnership

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By John Glenday, Reporter

October 21, 2015 | 2 min read

Two of the biggest players in the search business; Google and Yahoo, are to collaborate more closely on both search and advertising through to 2018, further reducing competition in the fields.

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This will see Google supply Yahoo with its own web and image search services as well as search ads via its AdSense for Search business for both desktop and mobile devices throughout global markets – with the notable exception of Europe where Google is embroiled in a tussle with regulators over alleged monopolistic practices).

Yahoo will pay a fee for the use of these services but will also pick up a percentage share of AFS revenues generated across its platforms although under the terms of the deal as reported by Seeking Alpha Yahoo has ‘has discretion to select which search queries to send to Google and is not obligated to send any minimum number of search queries.’

Yahoo had previously exclusively partnered with Microsoft’s Bing search engine and the new deal will still require 51 per cent of all Yahoo’s PC search traffic to route through Bing.

The latest traffic estimates to be calculated by ComScore show that Yahoo had a 12.7 per cent share of the PC search market in the US in September; versus a 63.8 per cent share for Google and 20.6 per cent for Microsoft.

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