Yahoo Defends Google Deal

... out that while theres some competition for the term among the 11 advertisers listed on Google, there are no advertisers listed on Yahoo"and now those 11 advertisers will be able to capture more clicks from Yahoo users.

Hey, thats cool. But lets be honest here"at least a few of those 11 advertisers probably made a conscious decision not to advertise on Yahoo. Perhaps one or two didnt know how to get onto Yahoos paid listings. Another few might have decided that their limited time is best spent focusing on AdWords. These advertisers might benefit from the deal, since theyll be able to extend their audience without much further effort (probably).

But what about advertisers who opt out because theyve tried Yahoo and found that it wasnt worth the cost"either the traffic Yahoo generated was lower quality or low enough volume that they simply didnt want or need to advertise on Yahoo? (Seriously, how many people are searching for red roses in Birmingham?)

The Association of National Advertisers seems to agree. Theyve already pledged $100 billion to fighting the deal, but theyre not the only ones opposed. Yesterday, All Things Digital encouraged the Google chief to Do Walk Away, Sergey (lyrical quibble: The Left Banke song says Just walk away, Rene, not Dont walk away, Rene).

Sure, the deal would ensure Google a stranglehold on the search advertising market and increase their revenues. But, as Kara Swisher points out, even if regulators approve this deal, dominating the market might actually hurt Google in the long run"the next time they go before regulators, theyre sure to get a long, hard look.

Still, Schneider was confident that the DoJ would approve the deal by its slated start date early next month.

Del.icio.us

Digg

Reddit

Furl