Benefits of Yahoo using Google advertising

by ian on January 4, 2007

This is a rather interesting article on why Yahoo should surrender and use Google advertising, in much the same way as a number of other smaller search engines have. It mentions that as a result, Yahoo could increase their average search revenue from $0.10 to $0.17 adding US$1.5 billion to their bottom line. I cant see this ever happening in the immediate feature, I think we are still in the early stages where each major player Google, Yahoo and MSN will continue to do battle for market supremacy. I would also not like to see this ever happen from a webmaster point of view, as the Yahoo Publisher Network is a viable alternative to Google adsense and serves to keep Adsense competitive and maintaining a decent revenue share split with their publishers. Currently the revenue share percentage is not openly disclosed and is just the subject of speculation.

{ 2 comments… read them below or add one }

John January 4, 2007 at 10:22 pm

I sure hope that never happens. One of the reasons Google is the giant that they have become is because Yahoo did that exact thing, except it was with their search results.

Back in the day Yahoo search results were ‘powered by Google’… and that was after Yahoo had already owned Inktomi & their search technology. Inktomi was the ‘big dog’ of search prior to Google. Google’s technology was better, but Yahoo literally helped to create a monster by using Google for search instead of their own (Inktomi).

Yahoo using Adsense would only help to create even a bigger monster and would erode Yahoo’s market share even further.

ian January 5, 2007 at 9:38 am

Also worth noting is the fact that by Yahoo maintaining their own advertising system, they have a much higher future earnings potential, as there is always the possibility that they might succeed down the track in taking on Google. Also the upside potential would factor into their company valuation/share price in my opinion.

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