June 12, 2008
Yahoo, Google Collaborate on Search Ads. Apocalypse Expected Soon.
In what must be one of the seven signs of the apocalypse, Yahoo and Google have agreed to extend the advertising tests they participated in last month to a broader-scale distribution partnership.
Under the agreement, Yahoo would outsource a portion of its search ad inventory to Google, and potentially to other providers in the future. Yahoo now has the option to display Google ads alongside its own natural search results and other Web properties in the U.S. and Canada.
Yahoo will select the search term queries and the pages where Google AdSense for Search or AdSense for Content ads will be shown. The deal does not affect Yahoo's algorithmic search.
Yahoo expects the deal to improve monetization of its pages, potentially adding $800 million in annual revenue. In the first 12 months following implementation, Yahoo expects the agreement to generate an estimated $250 million to $450 million in incremental operating cash flow.
The open bidding system will likely utilize the abilities of Yahoo's Right Media Exchange software to deliver those third-party ads on Yahoo's search results. Such a deal could still include spurned suitor Microsoft, which could also allay regulatory fears that Google is getting even bigger than it already is. To play nice with regulators, the two have agreed to delay implementation for up to three and a half months to give the U.S. Department of Justice time to review the arrangement.
The agreement has a term of up to ten years: a 4-year initial term and two 3-year renewals at Yahoo!'s option. Financial terms between the two companies were not disclosed. Either party will have the option of terminating the agreement in the event of a change in control of either party, but if Yahoo initiates it within the next 24 months, it will owe Google a termination fee is $250 million, subject to reduction by 50 percent of revenues earned by Google under the agreement.
The two-week test in April reportedly affected about 3 percent of Yahoo search queries, and only applied to search traffic from yahoo.com in the U.S. and did not include Yahoo's publisher network or other partners.
As an additional token of newfound camaraderie, Yahoo and Google agreed to enable interoperability between their instant messaging services.
Posted by Kevin Newcomb on June 12, 2008, 6:38 PM | Permalink | Comments (1)
Yahoo on MicroHoo: Stick a Fork In It - We're Done
MicroHoo is dead. RIP Microsoft-Yahoo. Today Yahoo made the official announcement that they've concluded discussions with Microsoft. The possibility of a full acquisition or a partical acquisition are nil.
What's more, Yahoo indicated that an independent search business will be critical to its strategic future and would not be in the best interests of Yahoo! stockholders. That casts doubt on the veracity of the TechCrunch rumor.
Full Text:
Yahoo! Inc. (YHOO) today announced that discussions with Microsoft regarding a potential transaction -- whether for an acquisition of all of Yahoo! or a partial acquisition -- have concluded. The conclusion of discussions follows numerous meetings and conversations with Microsoft regarding a number of transaction alternatives, including a meeting between Yahoo! and Microsoft on June 8th in which Chairman Roy Bostock and other independent Board members from Yahoo! participated. At that meeting, Microsoft representatives stated unequivocally that Microsoft is not interested in pursuing an acquisition of all of Yahoo!, even at the price range it had previously suggested.With respect to an acquisition of Yahoo!'s search business alone that Microsoft had proposed, Yahoo!'s Board of Directors has determined, after careful evaluation, that such a transaction would not be consistent with the company's view of the converging search and display marketplaces, would leave the company without an independent search business that it views as critical to its strategic future and would not be in the best interests of Yahoo! stockholders.
Yahoo! remains focused on maximizing value for stockholders by continuing to execute on its strategy of being the "starting point" for the most consumers on the Internet and a "must buy" for advertisers. The online advertising industry is projected to grow from $40 billion in 2007 to approximately $75 billion in 2010 and the company believes it has the right assets, strategic plan, Board of Directors and management team to capitalize on this growth opportunity.
UPDATE: Microsoft has issued a response:
"In the weeks since Microsoft withdrew its offer to acquire Yahoo!, the two companies have continued to discuss an alternative transaction that Microsoft believes would have delivered in excess of $33 per share to the Yahoo! shareholders. This partnership would ensure healthy competition in the marketplace, providing greater choice and innovation for advertisers, publishers and consumers."As stated on May 3rd and reiterated on May 18th Microsoft was not interested in rebidding for all of Yahoo!. Our alternative transaction remains available for discussion."
Posted by Kevin Heisler on June 12, 2008, 3:15 PM | Permalink | Comments (2)
Google-Yahoo Search Partnership Today?
Google and Yahoo may announce a partnership this afternoon at 4:30pm EST / 1:30pm PST. At least, that's the rumor coming from TechCrunch. Of course, this is the same rumor that the Wall St. Journal published on May 2, 2008.
There's no question a Google-Yahoo partnership would throw a wrench into Microsoft's merger plans to create MicroHoo. Billionaire investor Carl Icahn's efforts to oust the current Yahoo management would also be derailed.
We're skeptical there's a billion dollars in cost savings through a Google-Yahoo search partnership. In the short term, it's a Yahoo win.
In the long term, a search partnership would turn Yahoo into just another portal.
Posted by Kevin Heisler on June 12, 2008, 2:22 PM | Permalink | Comments (3)
Google's Schmidt Talks Yahoo, Newspapers, 'Don't Be Evil', and iPhone
Yesterday, Google's CEO Eric Schmidt was interviewed by Ken Auletta on stage at a San Francisco event hosed by Syracuse University's Newhouse School of Public Communications. Schmidt offered up insight on a variety of issues. Let's dig in.
Yahoo
An independent Yahoo would be better for innovation and competition, in Schmidt's opinion. He feels that Microsoft has delivered products such as Windows that limits the choice of consumers.
Newspapers
Schmidt said that Google has a 'moral imperative' to help newspapers, who've lost money in recent years to online publishers, who often provide their content for free. DoubleClick will be a part of the effort, though specific details were not revealed.
Of course, newspapers haven't traditionally been Google's biggest fan. A Belgian newspaper group has been going after Google for years for indexing their site.
'Don't be Evil'
The famous mantra is misunderstood, says Schmidt. Instead, the phrase was designed to facilitate internal conversations about corporate ethics, but most people interpret it as an absolute moral stance.
iPhone
Schmidt said that a "vast majority of searches" performed on Google via mobile phones are generated on iPhones. But since Google is preparing its own mobile platform, Schmidt has been excused from Apple board meetings a couple of times. He said that Android will "likely be quite different" from the iPhone.
via InfoWorld, USA Today, Reuters, and MarketWatch
Posted by Nathania Johnson on June 12, 2008, 12:15 PM | Permalink | Comments (0)
Kayak.com Launches Display Ad Platform
Travel search site Kayak.com has announced the launch of a targeted display advertising platform. The platform was developed by SideStep.com, which Kayak acquired in December 2007.
Kayak says display advertisers will be able to target a variety of search criteria, similar to existing text ads offered through the Kayak Publisher Network. Examples of search criteria are:
- Destination
- Origination
- Trip dates
- Length of stay
- Specific airline/hotel/car brands and car type
Three ad sizes will be available, which are in line with IAB standards:
- 180x150 pixels
- 160x600 pixels
- 300x250 pixels
Kayak and its affiliates generate 200 million ad impressions per month on air, hotel, and car search results pages. Currently there are over 30,000 text placements from more than 2,000 brands on the Kayak Publisher Network.
"Our advertisers have repeatedly told us that display ads can communicate travel services in a way that text ads cannot," said Steve Hafner, Kayak.com co-founder and CEO. "Yet we know that some consumers dislike these ads and find them distracting. I believe we've found the right balance by allowing our registered users to suppress or view them, whichever they prefer."
Related Reading:
What Matters Most to Travel Search Marketers in 2008?
Online Advertising Shifting from Branding to Direct Response
Posted by Nathania Johnson on June 12, 2008, 11:25 AM | Permalink | Comments (0)
Yahoo! Partners with Coupon Inc. for Mobile Coupons
Yahoo! and Coupons Inc. are launching a mobile coupon platform. Coupons Inc. is a leading online coupon distribution network and has relationships with 800 brands. The mobile network will immediately be available to all brands within the network.
“We see mobile coupons as a natural extension of our leading digital marketing platform and a way to turn coupons into a strategic marketing vehicle that delivers value,” said Steve Boom, Senior Vice President, Mobile, Yahoo!. “Our global reach, leading position in mobile advertising and the ability to deliver the right offer to people, coupled with Coupons, Inc.'s leadership in coupons, creates a unique opportunity to define and catalyze the market for mobile coupon promotions. When consumers get a coupon they want it's not seen as an ad – but a gift.”
While the mobile coupon market is relatively new, the strategy is expected to be a fruitful source of revenue for mobile publishers.Recent data from Hitwise shows that traffic to coupon websites is up 56% from 2007. Yahoo! and Coupon Inc. are hoping that translates to mobile.
“Coupons, Inc. has been innovating coupon technology for a decade. Mobile coupons are a logical next step in the industry's evolution, and we continue our commitment to drive interactive coupons with our new mobile initiative,” said Steven Boal, CEO of Coupons, Inc. “By partnering with Yahoo!, we will extend our customers' reach to a new generation of consumers — especially teens and young adults — in a medium that best fits their lifestyles.”
What do you think of this partnership? Are mobile coupons going to be lucrative? Let us know in the comments.
Related Reading:
Local Search at the Pump
Posted by Nathania Johnson on June 12, 2008, 10:59 AM | Permalink | Comments (9)
Google Custom Search Creates New Developer Guide
Google Custom Search has created a new developer guide, which is now available at the Google Code site. The guide was built from scratch with a new organization, search box, and navigation. There's also more pictures to break up an otherwise monotonous document (what's useful isn't always what's exciting).
The new developer guide also digs into background information and complex information as well as makes suggestions to help you on your way.
With the new guide, users can now search across multiple APIs. Google Custom Search fuels the search on the Google Code website.
Posted by Nathania Johnson on June 12, 2008, 9:52 AM | Permalink | Comments (0)
Will FriendFeed Change the Face of Search?
Earlier this year, I wrote about FriendFeed's new search feature and how it was a powerful tool for finding conversations about your brand. I've used the site a little more, and I know it's a great way to find user-generated content as well. Now, Steve Rubel is weighing in on the discussion over the power of FriendFeed's search, saying it could disrupt traditional search methods.
Rubel suggests that the real power lies in searching among a network of trusted friends. He says there will be a whole advertising strategy built around it, which he dubs social contextual search advertising. Rubel thinks this is where Facebook and Google are headed as well.
Really, all FriendFeed needs to do is sell contextual ads for this to happen. But FriendFeed is a long way off from disrupting search or changing search ad models. And is that the true mission of the social aggregator?
One of the best things about FriendFeed and all social sites is discovery of new things. It's difficult to search for things you're not aware of, making discovery more powerful than search, in my opinion.
Even so, FriendFeed needs to figure out ways to help its users manage all the noise. When you're tracking a bunch of people who are all sending their blogs, social bookmarking votes, Tweets, etc. to FriendFeed, it gets a bit overwhelming. The new "rooms" that have been created are helpful and so is the hide feature, but tagging friends would be even better.
Plus, FriendFeed needs to watch the mobile space carefully. The attention economy will be streamlined even further and all the noise will be a distraction.
Finally, sites like FriendFeed and Twitter are all primarily used by internet marketers, bloggers, web developers, and other tech power users. Search appeals to the masses for obvious reasons, but social media sites have yet to prove staying power (Friendster, anyone?).
What do you think the future of search and social media are? Will social media overtake search or is Google here to stay? Let it fly in the comments.
Posted by Nathania Johnson on June 12, 2008, 8:37 AM | Permalink | Comments (2)
Yahoo! to Integrate Right Media and AMP Ad Management Platforms, But When?
Yahoo! is planning to combine their AMP and Right Media ad management platforms, reports Zachary Rodgers over at ClickZ. The question is when, and the answer is vague at best.
The AMP platform is expected to launch in Q3 but only to newspaper consortium partners. But it could take longer to integrate Yahoo!'s BlueLithium Network and the Yahoo! Publisher Network.
Still, display advertising is where Yahoo really shines over Google. Despite its recent DoubleClick acquisition, display ads aren't something Google really "gets" yet.
Read Zachary Rodgers full post on Yahoo's ad management integration plans on ClickZ.
Posted by Nathania Johnson on June 12, 2008, 8:24 AM | Permalink | Comments (1)
SEW Experts: Think Links from New Sites Have Little Value? Think Again
It's often assumed that new sites haven't earned enough trust in Google to pass real value. But if you flatly skip over links from new sites, you're losing out on immense opportunities. In today's Link Building column, "Think Links from New Sites Have Little Value? Think Again," Justilien Gaspard advises link builders to think of it as investing in the stock market by looking for undervalued, or unnoticed, sites that have a high likelihood of rising in popularity.
Posted by Kevin Newcomb on June 12, 2008, 12:00 AM | Permalink | Comments (0)
SEW Experts: Live Search Cashback vs. Google: A Case Study
It's an interesting marketing concept, but how do the Live Search results measure up to Google, the de-facto search engine standard? In today's Building Brand Equity column, "Live Search Cashback vs. Google: A Case Study," Erik Qualman performs a test of product-based queries on each finds the results promising, but mixed.
Posted by Kevin Newcomb on June 12, 2008, 12:00 AM | Permalink | Comments (0)
