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.

Filed Under: ads, antitrust, outsourcing, partnerships
Companies: google, microsoft, yahoo

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  1. identicon
    Anonymous Coward, 9 Apr 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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