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.


Reader Comments (rss)

(Flattened / Threaded)

  •  
    identicon
    ptc, Apr 9th, 2008 @ 3:47pm

    Right Exit

    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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  •  
    identicon
    catfacts, Apr 9th, 2008 @ 3:59pm

    Odd Views

    The day I see "adds by Google" on yahoo.com will be the day I die of laughter.

     

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  •  
    identicon
    M, Apr 9th, 2008 @ 4:07pm

    yahoo and google

    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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  •  
    identicon
    interval, Apr 9th, 2008 @ 4:19pm

    Its the beginning of the end...

    ...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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    •  
      identicon
      Anonymous Coward, Apr 9th, 2008 @ 5:06pm

      Re: Its the beginning of the end...

      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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  •  
    identicon
    koresho, Apr 9th, 2008 @ 4:46pm

    re: yahoo and google

    You aren't crazy. It was around 2000...
    http://www.google.com/googlefriends/alert2_2000.html

     

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  •  
    identicon
    Anonymous Coward, Apr 9th, 2008 @ 6:53pm

    How is this the beginning of the end?

    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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  •  
    identicon
    Jacob, Apr 9th, 2008 @ 7:40pm

    Yahoo

    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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  •  
    identicon
    Anonymous Coward, Apr 9th, 2008 @ 7:48pm

    And the resistance is because...?

    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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    •  
      identicon
      Nick Carneiro, Apr 9th, 2008 @ 8:15pm

      Re: And the resistance is because...?

      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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  •  
    identicon
    Etch, Apr 9th, 2008 @ 10:11pm

    hahahaha!!

    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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    •  
      identicon
      NPGMBR, Apr 10th, 2008 @ 7:24am

      Re: hahahaha!!

      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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      •  
        identicon
        Etch, Apr 10th, 2008 @ 9:38am

        Re: Re: hahahaha!!

        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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  •  
    identicon
    Nasch, Apr 10th, 2008 @ 9:17am

    Field day?

    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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