Yahoo-Microsoft Deal Will Create New Online Advertising Opportunities
Today, Microsoft and Yahoo entered into a 10-year agreement in an effort to compete with Google in search marketing.
Here’s a quick breakdown of the deal:
- Microsoft will have an exclusive 10-year license to Yahoo’s core search technologies
- Implementation is expected to begin in the next 6 months (following regulatory approval)
- Microsoft's new search engine, Bing, will be the exclusive algorithmic search and paid search platform for Yahoo sites
- Microsoft will pay Yahoo at an initial rate of 88% of search revenue generated on Yahoo's owned and operated sites during the first five years of the agreement
- Yahoo will continue to syndicate its existing search affiliate partner program
- The agreement does not cover display advertising, email, instant messaging or other Web properties
At nFusion, we’ve been anticipating this agreement since talks began last year. And we believe it will have a big impact on companies’ online advertising efforts.
Here’s how:
Pay Per Click: The deal will provide more value for pay-per-click marketing on the Microsoft network. Microsoft will now have up to 28% market share in this space. This will create new opportunities to cost-effectively expand search campaigns and reach more targeted customers.
Search Engine Optimization: Google currently commands about 70% of search engine market share with Yahoo a distant second at 19% share. This agreement should begin to affect Google’s dominance, and create new avenues for additional SEO success.
nFusion is prepared to help our clients take advantage of this dynamic new environment, with campaigns that stay ahead of the curve, and offer great new opportunities for getting more return on every PPC and SEO dollar spent.
Contact nFusion today to find out how this seismic new agreement will impact your business, and how your company can reap the benefits of this latest shift in the digital landscape.
