What the new Microsoft-Yahoo deal means for hotel search advertising

by Josiah Mackenzie on August 5, 2009

Hotel marketing implications from Microsoft Yahoo deal

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-yahooMicrosoft 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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Hotel Merlin Iceland September 1, 2009 at 9:37 am

Im excited about their co-operation. Looking forward to see if they have what it takes to challenge the Giant.

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