Post by Dan Malachowski, Marketing Director
Yahoo has announced that it has signed a three-year search partnership with Google. The agreement gives Yahoo the ability to use Google organic and paid search results in Yahoo Search. New Google ads will complement ads supplied by Yahoo’s own Gemini search platform, as well as ads supplied by the Bing Ad Network via Yahoo’s partnership with Microsoft. The deal still requires regulatory approval.
WHY IS THIS HAPPENING?
The Google partnership enables Yahoo additional flexibility to create better search experiences for consumers. Yahoo can select the search queries that Google will supply, helping it fill gaps where Google may be stronger than Gemini or Bing Ads. Yahoo also has complete discretion; it doesn’t need to send a minimum number of queries to Google, and it can continue to partner with Microsoft or any other third party.
The Google partnership could also help Yahoo eventually get out of its Microsoft partnership, which was recently amended to include a new opt-out clause. The clause enables either Yahoo or Microsoft to end the search pact “by delivering a written notice of termination” at any time before the deal’s expiration in 2020.
Yahoo is squarely focused on further developing Gemini to “take back search,” but—in the meantime—will need Google, Microsoft (or both) to maintain performance and continue to grow Yahoo Search share.
- 51% of Yahoo! desktop ads will still be served through Bing Ads, under the current Yahoo-Microsoft agreement in place until 2020 (unless either side opts out)
- Yahoo Gemini will still serve up to 49% of Yahoo desktop ads, as well as all Yahoo mobile ads (smartphones and tablets). Under the new Yahoo-Google agreement, Yahoo may send some of these queries to Google, but doesn’t have to.
So, nothing is changing. Advertisers will continue to buy Yahoo ads through Gemini and Bing Ads. Separately, ads bought through Google may now appear on Yahoo.
CONSIDERATIONS for ADVERTISERS
When exactly will Google ads appear on Yahoo? The answer is that Yahoo has the discretion to choose which Google ads to use. Advertisers should keep the following considerations in mind:
- Google ads may serve when there are gaps in Yahoo’s inventory
- Google ads may serve if they perform better than Bing or Gemini ads
- There will be no double/triple-serving between Gemini, Microsoft or Google ads
Because double-serving will not occur, advertisers shouldn’t be concerned that the Yahoo search page features ads from three different systems. In fact, as Yahoo determines which ads perform best (e.g. Google ads or Gemini ads) they should see better performance on Yahoo as a result of this partnership.
To learn more about the Yahoo-Google Search Partnership, please contact your Performics account team today.