Google and Yahoo have signed a non-exclusive deal whereby Google will display its ads on selected Yahoo sites. According to the agreement estimated to generate $800 million in annual revenue, Yahoo will display Google ads sold to it. The news has been welcomed by the marketing community as Google AdWords is seen as a superior platform. This arrangement will allow businesses in the U.S. and Canadian markets to extend their marketing strategies to Yahoo sites to enhance visitor engagement and ROI.
One of Google’s main advantages is the massive volume of visitors it attracts, much more than other search engines. It is reported that Google controls 85 percent of search traffic in the U.S. Google ads are seen on thousands of websites. This deal between the two Internet giants is expected to help Yahoo benefit from Google’s massive ad network. Yahoo visitors can see ads that are more meaningful to them, further increasing visitor interest, clicks and revenue.
In the first year following implementation, Yahoo hopes the deal to result in an estimated $250 million to $450 million in incremental operating cash flow. However, how revenue will be shared with Google has not been disclosed.
Some marketing experts observe that this tie-up could be aimed at expanding Google’s ad campaign on the rapidly growing smartphone and tablet sectors. Yahoo, on the other hand, has been displaying Bing ads as per the long-term agreement they signed in 2009. Yahoo can now focus on expanding its network courtesy the new deal with Google.
This Yahoo-Google deal is seen as good news for all the SEO companies out there. These companies offer online marketing campaigns to help websites achieve increased visibility using organic SEO as well as advertising, pay-per-click campaigns, and paid placements. With Google’s Ads displaying deal with Yahoo, SEO companies would find it easier to create digital marketing campaigns.