Some time last year the techno world was abuzz with rumors of a supposed nexus between social media giant Google and the waning Yahoo. It was controversial in the sense that Google's arch nemesis - Microsoft had already cut a search deal in 2009 with Yahoo.
Adding a new dimension to the changing alliances in the social media industry, Yahoo today announced officially that it has 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 services".
Not surprising move by any standards since the Yahoo CEO Marissa Mayer is an ex-Googler who ran search operatives. It seems that a business understanding with her former employers was in the offing in view of Yahoo's declining popularity, both in terms of social media presence and revenue-wise.
What the fine print says is that Yahoo will benefit certainly with its association with Google. However, the ads featured on Yahoo's web pages is meant for contextual advertising.
Contextual ads are a advertising model in which the ads posted are of a similar nature as the content of a webpage on which it is displayed.
This deal simply means that Google will have legitimate access to Yahoo's inventory such as Yahoo News, Answers, Sports, Mail in return for its ads. While the move will surely expand Google's presence across the web further, Yahoo's sites will get more support with a lot more ads adorning its pages.In fact, analysts were expecting open sparks to fly from camp Microsoft since Yahoo is still in partnership with it. The reaction, however, was sombre since the earlier deal does not control Yahoo's business collaborations in any way.
Business Insider published Microsoft's spokesperson Frank Shaw's statement :
"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"
While Microsoft is displaying the time- honored good business spirit , how much it will be bothered with Google's inroads here is yet to be seen.
The bottomline is that only a vacillating Yahoo under the leadership of a Marissa Mayer could have honestly brokered such a deal. The need of the hour for Yahoo is to do its balancing act well with Google and Microsoft.
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