Customers are worried that Yahoo Google transactions will result in an increase in advertising prices

Source: Internet
Author: User

Sina Technology News Beijing time on June 15 news, according to foreign media reports, some marketing executives worried that Yahoo and Google in the search advertising field after the establishment of a partnership, the advertising price may be raised, and weaken the customer's control over the display position of the ad.

However, some marketing executives believe that the impact of Yahoo's Google transaction is still difficult to determine, depending on how Yahoo implements the complex agreement signed with Google, and whether it will continue to provide preferential measures for advertisers to encourage them to cooperate directly with themselves. On Thursday, Yahoo announced the termination of all negotiations with Microsoft and signed a non-exclusive search ad cooperation agreement with Google.

Ellen Siminoff, chairman of the board of search marketing company Efficient Frontier, said: "There are still many uncertainties. I think no one can fully determine the potential impact of Yahoo Google's transactions. For Yahoo, deploying and adjusting the system will be a very complicated task. Yahoo has to do something under heavy pressure. I can understand this. However, it remains to be observed whether the cooperation with Google is beneficial to Yahoo ."

Ad customers are most worried about the potential impact of the combination of Yahoo and Google, the two major search ad providers, on the search ad price. According to the non-exclusive agreement signed by both parties, Yahoo will put Google ads in the search results of the main site and the United States and Canada cooperation websites. Yahoo has the right to determine the location and method of Google ads. Through this transaction, Google will further consolidate its monopoly position in the search advertisement market.

Generally, advertisers purchase different search keywords through bidding and pay Google for the corresponding advertising fees. Although Google does not have manual pricing, some experts said that after Yahoo cooperates with Google, the price of search keywords may rise because more advertisers will bid for the same keyword. For example, some unpopular keywords of Yahoo may attract more advertisers.

Jim Lanzone, former CEO of search engine Ask.com, said: "The price of some search keywords may increase, but the magnitude will not be too large ." He predicts that Yahoo will eventually find that only half of the search space is outsourced to Google, in order to obtain substantial economic benefits. Before that, Ask.com has signed a cooperation agreement with Google to outsource the search advertisement business to Google.

After Yahoo cooperates with Google, users may not feel much change, but advertisers will face more and more complicated choices. Advertisers can buy advertisements displayed only on Yahoo, only on Google, or on Google and Google partner websites, including Yahoo.

Advertisers are worried that Google will gain more market control through this transaction. According to data released by market research firm eMarketer, Google occupies 76% of the U.S. search advertisement market, far ahead of other competitors. Yahoo ranks second with 7% of the market share.

Michael Menis, vice president of global marketing services at InterContinental Hotels, said: "at any time, if a company gets so much control, it worries ." Rob Norman, CEO of GroupM, a media buying company, said that if Yahoo outsourced more search ad spaces to Google, the company worried that the price would rise. (Moore

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