Google and Yahoo Strike A Deal
The Facts
The details of the search deal between Yahoo and Google, which became effective October 1, 2015 and lasting until the end of 2018 have been disclosed. Under the terms of a new arrangement, Google will provide Yahoo with search ads, algorithmic search, and image search services for both desktop and mobile. Yahoo will also get to decide which search queries to send to Google and will not have to meet a minimum requirement of queries. The deal provides Yahoo with additional flexibility to choose among suppliers of search results and ads. By partnering with Google, Yahoo can obtain part of the revenue from a company that has a more efficient and lucrative search and ad infrastructure.
What it means for advertisers
Now it is even more critical that brands advertise with Google to ensure that their ads appear on two of the top three search engines. We expect that this could further increase competition in Google search and advertisers could see an increase in CPCs. If your brand’s audience is on Yahoo (which it most likely is), you will need to buy search through three different engine platforms: Google, Bing and Yahoo Gemini. As traffic ramps up and down between the three main engine platforms, advertisers must be quick to adapt to avoid missing opportunity and impression share. Budget estimates should serve as a starting point but marketers must be nimble throughout the flight of their campaigns and reallocate funds based on shifts in query volume between engines.
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