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Microsoft and Yahoo finally tie the knot

It looks like two Davids are joining forces to take on Goliath. After years of public wrangling over the details, Microsoft and Yahoo finally announced a proposed 10-year partnership between their search-engine and online-advertising departments on Wednesday, July 29, 2009.

“In simple terms, Microsoft will now power Yahoo search while Yahoo will become the exclusive worldwide relationship sales force for both companies’ premium search advertisers,” the official Microsoft news release said.

The way I read that sentence, it means they will pool their resources so that Yahoo’s search engine will have the same tools as the Bing “decision engine.” It also means Bing will have access to Yahoo’s superior online advertising services and it can give advertisers better results and a bigger audience.

Right now, Google controls about 70 percent of the online-search market, while Microsoft and Yahoo, combined, only account for nearly 30 percent of all Internet searches. They’ll need a lot more stones in their sling if they hope to take down the giant.

What does this new relationship mean for pay-per-click advertisers? According to the news release,

Yahoo will become the exclusive worldwide relationship sales force for both companies’ premium search advertisers. Self-serve advertising for both companies will be fulfilled by Microsoft’s AdCenter platform, and prices for all search ads will continue to be set by AdCenter’s automated auction process.

Advertisers will be able to take advantage of Microsoft’s online-advertising tools while also receiving Yahoo’s expert service. This new service will hopefully offer the best of both worlds.

“Through this agreement with Yahoo, we will create more innovation in search, better value for advertisers and real consumer choice in a market currently dominated by a single company,” Microsoft CEO Steve Ballmer said, referring to Google.

Of course, companies and their CEOs want to promote their services as much as possible. Google probably has a completely different take on these events. So what are your thoughts? Is this development good or bad for ecommerce and Internet marketing? This is a complete version of the blog post on the eHarbor Blog: “What the Microsoft-Yahoo merger means for ecommerce.”

This internet marketing article was originally posted at submitsolution.com

Chris Rogers

More internet marketing articles can be found at submitsolution.com

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