Unsold advertising inventory on many Yahoo properties will now feature display ads from Google, the companies announced today.
The deal seems a tad unholy considering that the two companies are usually thought of as rivals, but it makes financial sense. Much like other web publishers, Yahoo doesn’t sell the maximum amount of advertising for its web properties. Rather than let that ad space to go to waste, Yahoo will sell that “inventory” to Google, who then runs display ads from its AdSense and AdMob networks and splits the revenue.
A similar deal with Google was initially rumored under interim CEO Ross Levinsohn last year, which new chief exec Marissa Mayer apparently resuscitated.
Here’s the official statement from Yahoo’s press release:
Today, we’re excited to announce that 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 services.
By adding Google to our list of world-class contextual ads partners, we’ll be able to expand our network, which means we can serve users with ads that are even more meaningful.
For our users, there won’t be a noticeable difference in how or where ads appear. More options simply mean greater flexibility. We look forward to working with all of our contextual ads partners to ensure we’re delivering the right ad to the right user at the right time.
We don’t know if Yahoo’s new alliance with Google will lead to further advertising deals. However, it is possible that Yahoo could trade in its search ad partnership with Microsoft for a better deal with Google.
VB's research team is studying web-personalization... Chime in here, and we’ll share the results.