October 29, 2015

Google and Yahoo…Together Again and It Feels So Good

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Michael Jenkins
Michael Jenkins

CEO - Shout Agency
[email protected]


In the world of search engines, Google and Yahoo have long been dominant players, shaping the way we navigate the vast expanse of the internet. While they may be rivals in the search engine realm, there was a time when these tech giants joined forces to form a partnership that sent shockwaves through the industry. Now, in an unexpected turn of events, Google and Yahoo are coming together once again, reigniting the collaboration that left a lasting impact on the digital landscape.

In this blog post, we will delve into the renewed alliance between Google and Yahoo and explore the implications it holds for users, advertisers, and the search engine market as a whole. We’ll take a nostalgic trip down memory lane to revisit the original partnership and examine how the landscape has evolved since then.

With their combined expertise and vast user bases, Google and Yahoo are poised to reshape the search engine landscape, offering users a more comprehensive and personalised search experience. Advertisers, on the other hand, can expect new opportunities and challenges as they navigate the renewed partnership and leverage its potential for targeted advertising.

Join us as we explore the reunion of Google and Yahoo and delve into the exciting possibilities that lie ahead. From enhanced search capabilities to innovative advertising strategies, this partnership is set to leave an indelible mark on the digital ecosystem once again.

Understanding the agreement.

Yahoo announced the deal in their quarterly statement. They are not abandoning Bing, but have the ability to work with Google on the other 49% of ads that do not go directly through Bing’s ad engine.

Furthermore, according to Search Engine Land this deal has huge mobile potential. That is because Yahoo only has an agreement with Bing on desktop ads.

Back in 2008, when the contract was signed mobile ads were not even on the horizon. Now with mobile searches making up over half of all searches around the world this has some huge potential.

The EU equation

While the US DOJ might block the deal like they did in 2008, the real stumbling block to this deal might be the EU. While the agreement specifically excludes EU, the trans-governing body has been waging antitrust legislation on Google for the past year.
The problem is that EU might be able to block the deal even though search deal does not include any of their member countries. While this might not be right for them to decide upon a deal that does not even happen in their own territory, it is a legitimate concern.

India is also considering action. Unlike the EU, they are one of the countries that is part of the deal.

Both sides have a drop out clause if the government regulations become too onerous on this deal.

That being said, the US DOJ might approve the deal. Last time they rejected the Google-Yahoo deal, Yahoo had to turn to Bing. Ever since their search engine share has gone down. Now Bing has crossed 20% of all searches. Yahoo is hovering around 12%. Google remains at 64.5%.

Why does this partnership matter?

The biggest question advertisers and publishers need to know is why does this partnership even matter?

The truth is that Google and Yahoo together brings three specific benefits to everyone involved.

  1. More paid traffic– While Google does provide the vast majority of searches around the world, Yahoo still has a sizeable chunk. By having ads go through Google and Yahoo it allows advertisers the ability to market themselves across multiple platforms.

That in turn can lead to additional traffic. Since one of the main reasons people advertise is for additional traffic to their website or store, this is a big deal.

  1. Targeting– Having more people to talk is not only good for more traffic, but more targeted traffic. Random people seeing your ad is useless unless they need what you are selling.

Now, advertisers have the ability to provide more relevant ads to more prospective customers.

That is one of the reasons why Facebook ads have taken off over the past few years. With over 1.4 Billion people using the social network, you can find a cohort group for almost any niche.

The same is true with Google, and doubly so when you combine Google with Yahoo.

  1. Lower Cost– Google ads are based on a bidding system. The more searches, the more ads can be spread out across multiple advertisers at lower costs.

For example, let’s say you have 10 advertisers paying for the keyword “dog food.” If currently, there are 10,000 searches per month, then based on studies 29.67% of those searches clicks go to sponsored ads.

For simplicity sake, let’s say that is 3,000 clicks.

If Yahoo gets 12% of the global search traffic, then maybe they have 360 paid clicks (12% of 3000).

Assuming that the average PPC is $1 and that all 10 advertisers have a $300 budget, then adding 36 more clicks per advertiser reduces their CPC to $.89. That is an 11% decrease in costs compared to just advertising on Google alone.

If you are running a campaign with multiple keywords this has a lot of exponential potential.

Final Thoughts

With Google and Yahoo coming together, we are seeing some new shifts in how search engines operate. Now, Yahoo is almost entirely dependent on Bing and Google for revenue generation.

However, they also are helping advertisers increase their reach at the same time. This could indicate a huge shift in fortunes for everyone involved in the deal.

If you are looking to benefit from the new Google-Yahoo deal, feel free to contact us with any questions you might have?

Book a free 45 minute consultation today.

    Book a free 45 minute consultation today.

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      As Founder and Director of Shout Web Strategy, Michael Jenkins is at the forefront of digital marketing. Since it’s inception in 2009, Shout has built a strong reputation as one of Australia’s leading strategic SEO agencies, assisting online businesses to formulate, implement and track successful marketing strategies. Michael is a respected thought leader and digital strategist, specialising in online strategy, corporate SEO, Google retargeting, email and conversion rate optimisation, and online reputation management. Follow Michael on Google+, connect with him through LinkedIn or visit the Shout Web Strategy website.

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