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February 07, 2013

Google to Sell Ads on Yahoo's Sites, Mobile Services

By Shankar Pandiath, TMCnet Contributor

The search giant Google (News - Alert) will soon be selling ads on Yahoo’s websites and mobile services.

“We recently signed a global, non-exclusive agreement with Google to display ads on various Yahoo! properties and certain co-branded sites using Google’s AdSense for Content and Google’s AdMob (News - Alert) services,” announced Yahoo on its official blog.

Google will be selling contextual ads for now. The ads that will appear will be meaningful to the readers as they’re keyed into words appearing on Yahoo Pages. The sold ad space has been unsold and will now be profiting with the help of Google.

Analysts are looking at the turn of events with interest. Yahoo’s chief executive officer, Marissa Mayer, handled the search department for years in her previous stint with Google, and was expected to take up steps to improve Yahoo’s revenue. The questions are, however, being raised about the 2009 Microsoft (News - Alert)-Yahoo deal for search advertising that included multiple exclusivity agreements.

The deal was inked to counter the dominance of Google at the time.

Microsoft's top spokesperson, Frank Shaw, has confirmed in a company statement to Business Insider that the deal with Google is legit and is allowed under the Yahoo-Microsoft agreement, which said, “The strategic alliance we entered with Yahoo! allows them to enter into agreements with other providers in the contextual advertising space. Bing Ads contextual offering is one of those providers. We continue to work closely with Yahoo! on making our Search Alliance successful for both companies and our customers.”

Yahoo will certainly gain from the deal. Google and Yahoo had been negotiating about the unsold -leftover ad inventory on Yahoo’s pages. The talks had been on much before Mayer was hired. Contextual ads from Google will now be able to use that unsold inventory. For Google’s contextual advertising Yahoo’s news and entertainment sites like Yahoo Sports, Yahoo Finance and OMG seem to be the best bet.

It was earlier believed that Yahoo was all set to sell off its ad-technology business. Mayer’s new strategy to keep it in-house with Google’s help may prove to be a significant one.

Yahoo has practically outsourced it all to Google.

Edited by Braden Becker
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