What the new Microsoft-Yahoo deal means for hotel search advertising
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Microsoft and Yahoo recently announced a major partnership to develop their search technologies. This is an important development in the search industry, so I wanted to briefly share the facts with you.
What happened
Microsoft and Yahoo created a partnership where:
- Microsoft’s technology and Bing! algorithm will power Yahoo search
- Yahoo will become the exclusive sales force for both companies’ premium (large) advertisers
- Self-serve (smaller) advertisers will use Microsoft AdCenter for both platforms
- Each company will maintain their separate display advertising businesses
The agreement will last for 10 years. However, the deal must pass regulatory approval in 6 months, and will take at least 2 years after that to complete.
Why it’s important
Basically, this alliance was formed to make a stronger competitive alternative to Google. Since Google currently has around a 78% paid search market share, it was often not worthwhile to develop separate ad campaigns for the Yahoo and Microsoft platforms (especially for smaller properties).
Hotel advertising implications
Nothing will change immediately: this is a long-term deal. It will take many months (if not years) to fully realize. But it’s encouraging to see a serious competitor to Google in the search marketing space. The combined R&D capabilities of these two companies could drive innovation…which is always a good thing.
What’s your opinion on this development?
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Im excited about their co-operation. Looking forward to see if they have what it takes to challenge the Giant.