Yahoo and Google recently signed a deal in which Google will provide ads for results on Yahoo’s search engine. Many of the details remain undisclosed, but the basic agreement is that Google will provide ads on Yahoo search results pages and pay Yahoo a percentage of gross revenues from AdSense for Search ads displayed on Yahoo Properties. In turn, Yahoo will pay Google fees for image search results or web algorithmic search results.
The deal is similar to a previous one between Yahoo and Microsoft Bing, which was updated in March. That update left a gap for Yahoo to partner with other search ad providers. Yahoo took advantage of this opportunity to partner with the largest search engine behemoth in the industry.
The agreement began on October 1st and expires late in 2018. Yahoo disclosed the general nature of the contract in its quarterly earnings results.
Both companies have also come to an agreement with the US Department of Justice regarding antitrust issues. The DOJ previously shut down a similar agreement between Yahoo and Google in 2008.
Google disclosed that the agreement would come to an end if “certain events” were to take place, but neither Google nor Yahoo has stated what events this clause refers to.
The contract is non-exclusive, meaning Yahoo remains free to continue its relationship with Microsoft and to provide its own search ads as well. Yahoo has previously been reported to be building technology for its own search results via mobile technology. This agreement simply gives Yahoo the opportunity to use the Google name and power for search results and ads while pursuing its own path.
This is an excerpt from Yahoo recently released statement in regards to the agreement:
“…Google will provide Yahoo with search advertisements through Google’s AdSense for Search service…web algorithmic search services through Google’s Web search Service, and image search services. The results provided by Google for these services will be available to Yahoo for display on both desktop and mobile platforms…”
