Yahoo So Desperate To Stay Away From Microsoft, It's Starting To Use Google Ads

from the now-that's-desperation dept

Wed, Apr 9th 2008 3:31pm — Mike Masnick

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.

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

17 Comments

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ptc, 9 Apr 2008 @ 3:47pm

Right Exit
When a product/service to be launched, exit-strategy is considered equally important as enter-strategy. Perhaps, this is the right exit point and way for Yahoo Ads.
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catfacts, 9 Apr 2008 @ 3:59pm

Odd Views
The day I see "adds by Google" on yahoo.com will be the day I die of laughter.
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M, 9 Apr 2008 @ 4:07pm

yahoo and google
I swear there was a time that yahoo had a "powered by Google" icon on their search. I think this was around 5-6 years back. Am I crazy or did that really happen?
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- Reason, 9 Apr 2008 @ 4:21pm
  
  Re: yahoo and google
  Actually, I'm pretty sure I once saw it too. I don't think you are crazy (or at least more so than I am :P)
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- Hozer, 9 Apr 2008 @ 4:24pm
  
  Re: yahoo and google
  i think is was more within the last 3 years.
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- Etch, 9 Apr 2008 @ 9:58pm
  
  Re: yahoo and google
  I was just asking the exact same question!!! You are not crazy
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interval, 9 Apr 2008 @ 4:19pm

Its the beginning of the end...
...for Yahoo. Although that's been in the wind for some time now. But for Yahoo to accept that Google ads work better (much better) has got to be a real hard pill to swallow; and the ultimate admission of defeat. Hit the snooze alarm Jerry Yang, its time to go back to bed and not worry about coming in to work tomorrow. Finally.
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- Anonymous Coward, 9 Apr 2008 @ 5:06pm
  
  Re: Its the beginning of the end...
  This is too weird. Yahoo experimenting with outsourcing ads to google, so they wont be taken over by microsoft... Huh?
  
  I thought you made money off of ads. The management is getting freaky!
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koresho, 9 Apr 2008 @ 4:46pm

re: yahoo and google
You aren't crazy. It was around 2000...
http://www.google.com/googlefriends/alert2_2000.html
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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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Jacob, 9 Apr 2008 @ 7:40pm

Yahoo
Yahoo used to be a great company, its sad seeing them go through these times. I stopped using yahoo chat cause they kept wanting me to install their 3rd party stuff and it was just buggy. I stopped using their mail when GMail came cause of the ajax goodness and simplicity. When you go to yahoo its all cluttered and complex. I've even seen their new mail and its not simple at all.. they need to reevaluate their marketing and quality insurance departments.
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Anonymous Coward, 9 Apr 2008 @ 7:48pm

And the resistance is because...?
Surely this has to be a typo...

_________________________________
NEWS ALERT
from The Wall Street Journal

April 9, 2008

News Corp. is in serious talks with Microsoft over a joint bid for Yahoo, people familiar with the situation said Wednesday. Microsoft has offered Yahoo shareholders a share-and-stock deal currently worth $292.24 a share, but Yahoo has resisted the offer.

Meanwhile, Yahoo and AOL are in advanced talks about combining their Web operations.

http://online.wsj.com/article/SB120776803032602423.html?mod=djemalertNEWS

The article link above is also mobile friendly. Mobile users, click the link to see this story now.
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- Nick Carneiro, 9 Apr 2008 @ 8:15pm
  
  Re: And the resistance is because...?
  Same thing happened to me too when I got the email.
  
  It is a typo. I had to do a double-take too. Follow the link The story's updated.
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Etch, 9 Apr 2008 @ 10:11pm

hahahaha!!
Didn't Steve Ballmer threaten to sue Yahoo if they didn't accept the takeover bid?
The other day I was thinking about how I would react if I were Jerry Yang to avoid being bought by Microsoft, I thought wouldn't it be cool if somehow Yahoo got a loan and counter-offered to buy Microsoft, and would then team with the Shareholders to sue Microsoft to accept the takeover bid! Sweet Irony!

But teaming up with google does the trick ;)
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- NPGMBR, 10 Apr 2008 @ 7:24am
  
  Re: hahahaha!!
  This isn't about feeling warm and cozy with your rivals. If Yahoo partners with Google the only thing they would be doing is delaying their eventual end. The whole point of business is to compete and if you can't create a better product partner with someone else to take on the big dog. Microsoft has failed in search and wants to take on Google (the big dog) with Yahoo's assets. Either way, Yahoo will (likely) lose but I wish them the best because Google needs more competition not less.
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  - Etch, 10 Apr 2008 @ 9:38am
    
    Re: Re: hahahaha!!
    I never said anything about warm and cozy, this is all just to slap Microsoft in the face by using google, and I find it sweet!!!!
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Nasch, 10 Apr 2008 @ 9:17am

Field day?
The DOJ would have a field day with Yahoo using Google ads, but MS taking over Yahoo would be no problem? Is MS even listening to what they're saying?
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