The yahoo shares were dropped recently; however, the news has it that the company has partnered up with the search giant Google. The agreement spreads over a period of 3 years covering both the desktop and mobile audiences here and abroad. Now all eyes are on Google and Yahoo partnership, seeing how the things would go. The partnership deal excludes almost all of Europe for avoiding the anti-trust issues and requires the approval of the US Department.
Deal’s Overview Here:
Yahoo shared that an agreement with Google offers Yahoo an additional flexibility in choosing among the suppliers of the ads and the search results. The offerings brought onto the table by Google complements the search services offered by Microsoft, in addition to Yahoo’s own ad products and search technologies.
What about Microsoft’s Partnership Deal with Yahoo?
We have all already heard about the Yahoo & the Microsoft search deal, which was also renewed in April this year. Yahoo agreed that Bing’s ads would appear on 51% of the desktop searches delivered by Yahoo, as part of their renewal. The 49% other would be powered by the Yahoo’s own ad system from the 3rd party which they wanted to use.
By the month of July, Yahoo has been already spot testing the Google’s search ads and results. The results were coming positive, which made Yahoo take things to the next level.
More on Yahoo, Microsoft & Google’s pairing
This is not the first time that Google and Yahoo have paired up. Yahoo also paired up in the year 2000 for carrying both the Google’s search ads and the results. This partnership continued for several years, till Yahoo worked and developed its own ad serving systems and the required in-house technology in the year 2004.
In the year 2010, Yahoo gave its own internal search technology after forming a search deal with Microsoft. However, this deal hasn’t brought the expected results in Yahoo for 2 years. It has since been looking for a way to generate more revenue from the search beyond its Microsoft deal.
The 3-Year Google Deal
Yahoo officially entered into Google’s partnership on October 19th, 2015. The agreement is effective as of Oct 1, 2015, and would expire on Dec 31, 2018. However, the partnership can also end early depending on a few reasons below.
Google to Control Both the Desktop & Mobile Searches
According to the Services agreement, Google would offer Yahoo a search advertisement through its Ad Sense for the search service (“AFS”), image search services, and the web algorithmic searches through Google’s Web search service. The results obtained by Google would then be made available to Yahoo for display on both the mobile and desktop platforms.
In other words, it means that Google’s results both free and paid would be shown on Yahoo. Since, Yahoo doesn’t have its editorial listings “free listings” or a crawler that is, it would serve them both. But Yahoo probably wouldn’t show the Google ads against the editorial listings offered by Microsoft’s Bing Search Engine.
What About 51% More Space?
Yahoo can use the search results for both the desktop and mobile. It’s limited to a cap of 49% which would come from Google on the desktop, as Microsoft gets the other 51%. However, Yahoo hasn’t reserved the percentages for the mobile searches. This means that if it wants, it could dedicate the entire mobile search to Google prioritizing it over its own Gemini ads system.
The European Exclusion
Well the deal is made for serving the following regions:
- United States
- Hong Kong
- Middle East
- New Zealand
By checking the list above, you would see that all the major countries are listed excluding just the countries of the European region. The main reason for the exclusion of Europe is that the Google has got an anti-trust action happening against it in the EU, and doing a deal with Yahoo there would result in a lot of negative attention for Google.
The Search Deal is completely flexible
Under the part of this services agreement, Yahoo can choose which search queries to send to Google. It is under no circumstance is obligated for sending a certain number of search queries. The services agreement is non-exclusive, meaning that Yahoo is in full control to use the search advertising services including its own, the Microsoft Corporation services, and the 3rd parties.
In other words, you can say that Yahoo isn’t guaranteeing anything to Google and can always decide to send no search queries to Google if it wants.
The Yahoo Ads Search Share is Cut; Image Search Named
Yahoo is also going to pay the Google fee for image search results in the request and the web algorithmic search results. It is quite standard, paying Yahoo some percentage for its ads that are shown on it.
The percentage would vary depending on where the income is coming from, that is the desktop or the mobile version. Also, there is no minimum guarantee from Google to be paid to Yahoo. This is the case in this deal as it was also in the case of Yahoo-Microsoft deal.
However, yahoo is duty-bound to pay Google for using its editorial search results for the images and web listings. It is ensuring that Yahoo pays Google for showing its Google listings when placing its own ads against those search results. Without this case, Google would get nothing except being a search result service provider.
Termination of Services Agreement
If either party decides to join Europe or India for performing the services agreement or its continued performance has a strong impact on the ongoing antitrust proceedings involving either party in India or Europe, it would result in the termination of the deal.
Furthermore, Google and Yahoo both can suspend and terminate the services agreement if certain events are not cured. A 60 days notice is to be served on ending by either party. Finally, Google can terminate for some unknown reasons. Both the parties can file a lawsuit and take legal action for protection.
We don’t know how the deal would turn out for Google and Yahoo both, but for now, we can only predict that some major search changes are heading towards Yahoo for the greater good of it. For any help and assistance in search marketing, you can consult with the search engine optimization professionals of Medialinkers. You can read the Medialinkers Reviews here.