Trouble insight for Google-Yahoo Deal!

September 8, 2008 · Filed Under News · Comment 

The Association of National Advertisers (ANA) has sent a letter to Head of the antitrust division of the US Department of Justice, opposing the controversial Google-Yahoo search advertising deal.

Yahoo said that it didn’t have relevant ads for some keywords, and the result pages would not have any ads. As a result the company decided to allow Google to use some of the valuable virtual real-estate, in a revenue sharing model. At the same time Yahoo could also choose to place Google ads along-side its own. To put it simply all they are trying to say is that Google will be placing ads on Yahoo search result pages.

The ANA consists of a group of 400 powerful companies that spend a grand total of $100 Billion in advertising. In an official statement the association stated

“The letter, authorized by the ANA board, notes that a Google-Yahoo partnership will control 90 percent of search advertising inventory and states ANA’s concerns that the partnership will likely diminish competition, increase concentration of market power, limit choices currently available and potentially raise prices to advertisers for high quality, affordable search and advertising.”

The deal will give Yahoo an extra $800 million revenue in the first year, as a result boosting its cash flow to $450 million from $200 million. It was initially announced in June and the two companies said they will implement it after 100 days to give anti-trust regulators to review the deal.

Time will judge the fate of the deal and the fate of Yahoo, which needs the deal most.

Tags: , , ,

ppc management | tractor parts | World Financial Group

Cyberprenuers Media

TheBusinessEdition.com |  Cyberzest.com  |    MidnightEdition.com   |  ProfitEdition.com  |   Stealthgamers.com