Rival search engines, Yahoo! and Google, have teamed up in an arrangement that enables Google to host contextual ads within some of Yahoo!’s website and web properties. This will allow Google to profit from their own format of web advertisements that can now be seen through Yahoo!’s web and mobile presences. This move comes after a string of changes made to Yahoo!’s business and product plans after ex-Googler Marissa Mayer was appointed CEO to in an attempt to change the fortunes of the failing firm.
Yahoo! announced the development through their official Yahoo! Corporation blog in a post entitled “Yahoo! Teams with Google on Contextual Advertising”:
“Today, we’re excited to announce that we recently signed a global, non-exclusive agreement with Google to display ads on various Yahoo! properties and certain co-branded sites using Google’s AdSense for Content and Google’s AdMob services.
By adding Google to our list of world-class contextual ads partners, we’ll be able to expand our network, which means we can serve users with ads that are even more meaningful.
“For our users, there won’t be a noticeable difference in how or where ads appear. More options simply mean greater flexibility. We look forward to working with all of our contextual ads partners to ensure we’re delivering the right ad to the right user at the right time.”
The agreement only enables Google to provide contextual adverts for Yahoo! services. Contextual adverts are targeted to specifically relate to the content that appears on the same page as the adverts. Google powers these through its AdSense for Content and its AdMob mobile service. Contextual Advertising can be seen to be beneficial for all sides of the agreement as users receive ads that are targeted to the content they are already consuming and are therefore more likely to be relevant to them. If you have to have adverts on content, it is preferable for them to at least be relevant. Advertisiers therefore benefit from having their adverts targeted to a specific audience and can expect a higher conversion rate than from schemes that don’t have any sort of filter.
This is not the first time that the two tech giants have come together in collaboration talks. Last year, the firms met to discuss the possibility of combining forces on a range of factors, including forms of advertising. No deal was formed at this meeting which was part of ex Yahoo! CEO, Ross Levinsohn’s plan to make Yahoo! an internet media giant.