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Yahoo Giving Into MSI Mean Google

...announced today that it will begin a limited test of Google Inc.s Ad Sense for Search service, which will deliver relevant Google ads alongside Yahoo!s own search results. The test will apply only to traffic from yahoo.com in the U.S. and will not include Yahoo!s extended network of affiliate or premium publisher partners. The test is expected to last up to two weeks and will be limited to no more than 3% of Yahoo! search queries.

So Yahoo is going to serve Google AdSense for Search in the SERPs. Sure why not. This move would immediately add a LARGE boost to the Yahoo bottom line. This move would also make MSNs proxy fight much more difficult because of the added revenue to the Yahoo bottom line.

So why is Yahoo doing this now? because MSN are now truly showing their teeth? Is this Yahoo last stand to stay independent?

Maybe Yahoo will stay Yahoo after all? Yahoo also announced today that they have purchased Index Tools, a web analytics software. Hmmmm, weird timing for these two announcements wouldnt you say? For a company they seemed ripe for the pickings by MSN, Yahoo sure are making some bold moves.

Update:

MSN was quick to answer:

Microsoft Comments on Yahoo! Announcement

Any definitive agreement between Yahoo! and Google would consolidate over 90% of the search advertising market in Googles hands. This would make the market far less competitive, in sharp contrast to our own proposal to acquire Yahoo! We will assess closely all of our options. Our proposal remains the only alternative put forward that offers Yahoo! shareholders full and fair value for their shares, gives every shareholder a vote on the future of the company, and enhances choice for content creators, advertisers, and consumers.

Well that pretty much solidifies MSN stance on this move. Your doing this to fool people into thinking this will save your company and bottom line.

Cant wait for some user feedback on traffic and some screenshots

Update2:

This is just getting better and better:

Report: Yahoo & AOL Approaching A Deal

Yahoo, AOL Close In on Tie-Up Deal from the Wall Street Journal reports that Yahoo and AOL are close on finalizing a deal that would combine parts of both companies. The deal would bridge Timer Warners Internet operations with Yahoo by folding the AOL unit into Yahoo. In return, Time Warner would make a cash investment of about 20% of the combined entity, valuing AOL at about $10 billion.

Eric Lander, Associate Editor at SEJ likens all these moves by Yahoo today as a game of poker:

I cannot help but think that we are witnessing the ultimate search industry poker game, with each of the big three with their cards held close to their vests. The inclusion of AOL and Time Warner is an interesting one, and to me shows that Yahoo! may still retain more control of the situation than we may be lead to believe. Ultimately though, theres nothing aside from rumors at the time to report.

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Tag: Google, Yahoo, Microsoft

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View All Articles by Jaan Kanellis

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About the Author:
Jaan Kanellis a.k.a IncredibleHelp is a search marketing expert located in the Cincinnati, Ohio. Jaan Kanellis is the founder of KBKMarketing.com, which provides organic and PPC search marketing to clients, agency partners and SEM companies. Jaan has been involved in online marketing since 1999 and authors a search marketing blog at JaanKanellis.com.

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