Yahoo CEO Marissa Mayer has announced on Tuesday that the company has signed a search-advertising deal with Google Inc in order to provide greater stability as well as choice and better user experience to Yahoo users. As a part of this agreement, Google will power Yahoo with search advertisement from Google’s ‘AdSense for Search’ (AFS) service. Yahoo will also get the access of Google algorithmic search service and image service. All these Google-powered search results will be available to Yahoo for display on both desktop and mobile platforms. Let’s have a look over the key terms of this search agreement.
Yahoo has announced in Yahoo Earning News for Q3 of 2015, “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.”
If you are thinking that Yahoo already has a search deal with the Microsoft then you are right. But the company has renewed the deal with Microsoft in April this year. As per the renewed agreement, Bing ads will appear on 51% of the all-desktop search that Yahoo delivers. Yahoo’s own search network or any other third party ad network could power remaining 49%. We have spotted Yahoo testing with Google’s search result and ads back in July. It will come officially after this deal.
Yahoo Inc. and Google Inc. have signed the deal for three years. The effective agreement period for this deal is October 1, 2015 to December 31, 2018. Both the companies have rights to terminate the agreement for various reasons discussed in the detailed contract.
Yahoo will show Google-powered search result on both the desktop and mobile platform. Google ads display possibility is limited to 49% in case of Desktop search, but there is no such limit for Yahoo when it comes to Mobile search. It can choose to fully serve Google-powered search ads.
Yahoo can use Google powered service on various properties in following regions. “Yahoo may use Google’s services on Yahoo’s owned and operated properties (“Yahoo Properties”) and on certain syndication partner properties (“Affiliate Sites”) in the United States (U.S.), Canada, Hong Kong, Taiwan, Singapore, Thailand, Vietnam, Philippines, Indonesia, Malaysia, India, Middle East, Africa, Mexico, Argentina, Brazil, Colombia, Chile, Venezuela, Peru, Australia and New Zealand.”
As per the agreement Yahoo has the power to choose which query to send to Google and which is to not. Also, there is no obligation to send a minimum number of search queries. Yahoo can also use other third-party ad services to share the ad display part with Google.
This is a big deal at least for Yahoo as it is not such a huge search powerhouse now. Both the companies are looking forward to getting the best outcome from the deal.
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