As of October 20th, it was revealed, as a part of Yahoo’s earning news, that there is a new deal with Google:
In October, the Company reached an agreement with Google that provides Yahoo with additional flexibility to choose among suppliers of search results and ads. Google’s offerings complement the search services provided by Microsoft, which remains a strong partner, as well as Yahoo’s own search technologies and ad products.
Now, we all know that Yahoo has a deal with Microsoft, and this is why this new deal with Google feels weird. But what we have to keep in mind is, although Yahoo and Microsoft do have a search deal that was renewed back in April, Yahoo does have some wiggle room to play with. In the deal, Bing’s Ads would appear on 51 percent of all desktop searches that Yahoo delivers, but that leaves 48 percent that could be powered by either Yahoo’s own ad system, or from any other source of their choosing. This is where Google comes in.
Back in July, Yahoo had been spotted testing using Google’s search results with ads. At this point, it seems clear that Yahoo thought that the tests went swimingly, so now they want to do more with it.
It looks like this new deal will last three years, according to the Form 8-K filing. Here’s a break down of the length of time in layman’s terms:
On October 19, 2015, Yahoo! Inc., a Delaware corporation (“Yahoo”), and Google Inc., a Delaware corporation (“Google”), entered into a Google Services Agreement (the “Services Agreement”). The Services Agreement is effective as of October 1, 2015 and expires on December 31, 2018.
Here’s some more information from the filing:
Pursuant to the Services Agreement, Google will provide Yahoo with search advertisements through Google’s AdSense for Search service (“AFS”), web algorithmic search services through Google’s Websearch Service, and image search services. The results provided by Google for these services will be available to Yahoo for display on both desktop and mobile platforms.
Again, in regular-speak, this basically means that Yahoo can show Google’s search results, such as editorial “free” listings, as well as ads. Yahoo is going to be serving both, as Yahoo doesn’t have any editorial listings of its own. nor does it have any crawlers that combs he web for such content. Plus, Yahoo probably won’t be able to show Google ads against editorial listings provided by the Bing search engine.
On another interesting note, the deal will be excluding Europe. More than likely, the reason for this is to help avoid anti-trust issues.
There’s a lot more to this deal than just what I’ve mentioned above, although you an check out Danny Sullivan’s post on Search Engine Land by following the Original Source link below. In his post, you’ll get answers and information, such as:
- Could Yahoo go over 51% on mobile with Google?
- How much flexibility does Yahoo have, despite have a deal with Google?
- Will Yahoo get a cut of the ads?
- Will there be the ability to terminate the deal early, or are the stuck until December 31 of 2018?
- and more!