Washington Royal Rumble: Google & Yahoo! vs. Microsoft & Yellowpages.com

One of the deals that Yahoo! reached in the past few months was to use Google ads on their web site to potentially earn more revenue than they could with their own search marketing product. They did a trial run earlier in the year and apparently it went so well they wanted to make an even bigger deal. Well the moment this story went public senate hearings started happening on antitrust issues and how this deal and integration will raise the advertising costs. Microsoft is of course one of the strongest opponents of this deal in saying that Google and Yahoo! control 90% of the search advertising business. They believe it is a monopoly which is funny because now they are on the other side of the antitrust issue. This past week the Senate hearings occurred and all the following big guns were in Washington voicing their opinion (each name links to their statements):

David Drummond
Google
Michael Callahan
Yahoo!
Brad Smith
Microsoft
Matthew Crowley
Yellowpages.com
Tim Carter
Askthebuilder.com

Here is a video interview by Kara Swisher at AllThingsDigital, a Wall Street Journal publication, of Google, Yahoo!, and Microsoft lawyers impression on the hearings:

My personal opinion is that this deal is win-win situation for advertisers as well as publishers. Creating a standard, open platform for publishers to choose where their advertising goes is beneficial to the industry. My hope is when I do my ad buys on Google AdWords, I can do placement targeting and choose Yahoo!’s web site as one where I want to place my ads. Otherwise, I would have to have two separate budgets for Google AdWords and Yahoo! Search Marketing. Why not create a platform that is beneficial to the users? Let me know your thoughts by adding a comment to this blog entry.

-Randy
P.S. I’m cycling 100 miles on September 28, 2008 in Honolulu, Hawaii to support cancer research and patients like my teammate Gene who is a 4-year survivor. Make a 100% tax-deductible donation today to the Leukemia & Lymphoma Society at https://djksar.wordpress.com/honolulu-century-bike-ride/

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