Yahoo So Desperate To Stay Away From Microsoft, It's Starting To Use Google Ads
from the now-that's-desperation dept
Last summer there was speculation that a bold step for Yahoo to take to revive its sagging prospects would be to ditch its own ad system and outsource it to Google. Despite Yahoo trying to catch up for many years, Google's ad system just works much, much better. It would save Yahoo a ton of money and probably create better returns -- even if it would help fuel Google too. However, Yahoo pretty much laughed off the suggestion... until now. Being aggressively pursued by Microsoft can have that effect -- especially as white knight rescuers seem few and far between (i.e., they don't seem to exist at all). So, with that, the news is breaking that Yahoo is finally going to test running Google's ads. It's a "small scale" test, only running for a couple weeks and only on a small percentage (less than 3%) of Yahoo's inventory. But, assuming it goes well, it'll likely lead to a much bigger shift. Of course, Microsoft was quick to denounce the deal, claiming that the Justice Department would have a field day over the antitrust issues raised, but so far Microsoft doesn't have such a great track record in getting the DOJ to act on its antitrust complaints.
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Right Exit by ptc on Apr 9th, 2008 @ 3:47pm
When a product/service to be launched, exit-strategy is considered equally important as enter-strategy. Perhaps, this is the right exit point and way for Yahoo Ads.
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Odd Views by catfacts on Apr 9th, 2008 @ 3:59pm
The day I see "adds by Google" on yahoo.com will be the day I die of laughter.
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yahoo and google by M on Apr 9th, 2008 @ 4:07pm
I swear there was a time that yahoo had a "powered by Google" icon on their search. I think this was around 5-6 years back. Am I crazy or did that really happen?
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Its the beginning of the end... by interval on Apr 9th, 2008 @ 4:19pm
...for Yahoo. Although that's been in the wind for some time now. But for Yahoo to accept that Google ads work better (much better) has got to be a real hard pill to swallow; and the ultimate admission of defeat. Hit the snooze alarm Jerry Yang, its time to go back to bed and not worry about coming in to work tomorrow. Finally.
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Re: yahoo and google by Reason on Apr 9th, 2008 @ 4:21pm
Actually, I'm pretty sure I once saw it too. I don't think you are crazy (or at least more so than I am :P)
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Re: yahoo and google by Hozer on Apr 9th, 2008 @ 4:24pm
i think is was more within the last 3 years.
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re: yahoo and google by koresho on Apr 9th, 2008 @ 4:46pm
You aren't crazy. It was around 2000...
http://www.google.com/googlefriends/alert2_2000.html
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Re: Its the beginning of the end... by Anonymous Coward on Apr 9th, 2008 @ 5:06pm
This is too weird. Yahoo experimenting with outsourcing ads to google, so they wont be taken over by microsoft... Huh?
I thought you made money off of ads. The management is getting freaky!
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How is this the beginning of the end? by Anonymous Coward on Apr 9th, 2008 @ 6:53pm
Granted, Yahoo has been in decline in the US for a while, but it is literally the ONLY choice for some countries.
I work in the computing services part of the hospice industry, and I deal with FAR more @yahoo than @gmail or @hotmail or even @aol accounts than any other.
Even if I added the averages up to everyone else vs yahoo, yahoo would be marginally larger.
They'll still make money off of the ads, and they won't have to pay for a system that less and less use and is eating up a lot of company resources.
They may end up making MORE money using Google ads than their own.
Oh and how is it any different than the Google Ad I see right here on Techdirt as I type this about Yahoo Pay Per Click?
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Yahoo by Jacob on Apr 9th, 2008 @ 7:40pm
Yahoo used to be a great company, its sad seeing them go through these times. I stopped using yahoo chat cause they kept wanting me to install their 3rd party stuff and it was just buggy. I stopped using their mail when GMail came cause of the ajax goodness and simplicity. When you go to yahoo its all cluttered and complex. I've even seen their new mail and its not simple at all.. they need to reevaluate their marketing and quality insurance departments.
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And the resistance is because...? by Anonymous Coward on Apr 9th, 2008 @ 7:48pm
Surely this has to be a typo...
_________________________________
NEWS ALERT
from The Wall Street Journal
April 9, 2008
News Corp. is in serious talks with Microsoft over a joint bid for Yahoo, people familiar with the situation said Wednesday. Microsoft has offered Yahoo shareholders a share-and-stock deal currently worth $292.24 a share, but Yahoo has resisted the offer.
Meanwhile, Yahoo and AOL are in advanced talks about combining their Web operations.
http://online.wsj.com/article/SB120776803032602423.html?mod=djemalertNEWS
The article link above is also mobile friendly. Mobile users, click the link to see this story now.
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Re: And the resistance is because...? by Nick Carneiro on Apr 9th, 2008 @ 8:15pm
Same thing happened to me too when I got the email.
It is a typo. I had to do a double-take too. Follow the link The story's updated.
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Re: yahoo and google by Etch on Apr 9th, 2008 @ 9:58pm
I was just asking the exact same question!!! You are not crazy
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hahahaha!! by Etch on Apr 9th, 2008 @ 10:11pm
Didn't Steve Ballmer threaten to sue Yahoo if they didn't accept the takeover bid?
The other day I was thinking about how I would react if I were Jerry Yang to avoid being bought by Microsoft, I thought wouldn't it be cool if somehow Yahoo got a loan and counter-offered to buy Microsoft, and would then team with the Shareholders to sue Microsoft to accept the takeover bid! Sweet Irony!
But teaming up with google does the trick ;)
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Re: hahahaha!! by NPGMBR on Apr 10th, 2008 @ 7:24am
This isn't about feeling warm and cozy with your rivals. If Yahoo partners with Google the only thing they would be doing is delaying their eventual end. The whole point of business is to compete and if you can't create a better product partner with someone else to take on the big dog. Microsoft has failed in search and wants to take on Google (the big dog) with Yahoo's assets. Either way, Yahoo will (likely) lose but I wish them the best because Google needs more competition not less.
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Field day? by Nasch on Apr 10th, 2008 @ 9:17am
The DOJ would have a field day with Yahoo using Google ads, but MS taking over Yahoo would be no problem? Is MS even listening to what they're saying?
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Re: Re: hahahaha!! by Etch on Apr 10th, 2008 @ 9:38am
I never said anything about warm and cozy, this is all just to slap Microsoft in the face by using google, and I find it sweet!!!!
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