$100 Billion Might Persuade Regulators to Block Google/Yahoo Ad Deal

Monday, September 8th, 2008 by Andy Beal

$100 Billion Might Persuade Regulators to Block Google/Yahoo Ad Deal

If you were in charge of approving or denying Google’s search ad deal with Yahoo, would $100 billion influence your decision?

I’m not talking about a check with your name in the "PAY TO" section, but a protest letter from a group of advertisers that, combined, control $100 billion in marketing spend. Would that make you think twice about giving your stamp of approval?

Well, the Association of National Advertisers (ANA) just sent a letter to the antitrust division of the U.S. Department of Justice, citing its opposition to the Google-Yahoo search advertising deal. In a statement, the ANA stated:

The ANA has sent a letter to Thomas O. Barnett, Assistant Attorney General, U.S. Department of Justice (DOJ), citing its objections to the announced Google-Yahoo search advertising partnership now under review by the DOJ. In preparing this letter, ANA conducted a comprehensive, independent analysis, which included input from the Board’s members and face-to-face discussions with Google and Yahoo.

The letter, authorized by the ANA Board, notes that a Google-Yahoo partnership will control 90 percent of search advertising inventory and states ANA’s concerns that the partnership will likely diminish competition, increase concentration of market power, limit choices currently available and potentially raise prices to advertisers for high quality, affordable search advertising.

There’s some serious clout behind those words. Aside from the $1B budget, the ANA consists of many Fortune 500 companies including Walt Disney, Johnson & Johnson, and Procter & Gamble.

I personally don’t see what the big deal is. Under the partnership, Yahoo is still free to partner with other companies and advertisers are the ones who control search advertising prices–at least for the most part.

Google and Yahoo were prepared for some opposition to the deal–hence agreeing to give regulators 100 days to review the deal–but they probably weren’t expecting such stout opposition.

What’s your take on the deal?

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14 comments on “$100 Billion Might Persuade Regulators to Block Google/Yahoo Ad Deal”

Joe Hall Says:

September 8th, 2008 at 10:02 am

I don’t care how much ad dollars ANA represents. Whats more important is how much of that they are spending on their lobbying efforts. If they can throw some of that corporate weight and money behind dramatically swaying law makers and department heads then yes they have a shot, but letters alone aren’t going to get the ball rolling.

Joe Hall’s last blog post..Bloggers deserve real tips not stolen goods!
Otilia @ Ad Ops Online Says:

September 8th, 2008 at 10:24 am

I think the bashing and crying should stop… Yahoo should be free to partner with anybody they fancy, this is not an exclusive deal to start with!

Otilia @ Ad Ops Online’s last blog post..Five Taps Brightcove to Launch Advertising-Supported Internet Video for Top News and Entertainment Web Properties
David D Says:

September 8th, 2008 at 10:25 am

I really don’t get all that much traffic from Yahoo anyway. It doesn’t make any difference to me. I think the real story here is Google, and their access to all the user data which allows them to crunch numbers and arrive at a formula that gets them the best access to both users and advertising dollars. No other engine or site comes close to the “data control” google currently wields.
SEO forums Says:

September 8th, 2008 at 10:33 am

If I was in-charge…….$100 billion would have really influenced my decision

SEO forums’s last blog post..Backlinks.Com – Make easy money with your Blog
Nicole Price Says:

September 8th, 2008 at 10:38 am

Unlike other media, G and Y are not exactly the kind who will roll over and beg for business from the big ad agencies. The net is here to stay and it is up to the other media to take up this issue. This is what the ANA is trying to do.

Nicole Price’s last blog post..Camping Gear at Great Prices
San Nayak Says:

September 8th, 2008 at 10:51 am

I support ANA as it is very clear it not to do with Y but to do with G. It is Google going super power here and it will make others’ life tough in future. It is better to stop now else it will be too late later.

San Nayak’s last blog post..BAPS Shri Swaminarayan Mandir Bartlett, Chicago, IL, 60103
Alexander M Zoltai Says:

September 8th, 2008 at 11:00 am

Was watching “The Aviator” again last night, the Scorsese flick.

PanAm is in bed with the government and Howard Hughes’ TWA is the renegade who “threatens” the “stability” of transcontinental flight…

Actually, I think Hughes, though laying waste to a congressional hearing armed to take him down, could have learned something from Google.

Alexander M Zoltai’s last blog post..Who Is Writing The Future ?
Ami Ohayon Says:

September 8th, 2008 at 2:26 pm

I think David D nailed it … Google has achieved what it has achieved primarily by being better than everyone else at what they do.

They aren’t forcing their products on consumers or businesses, as Microsoft did with OEM installs of Windows. They simply have a superior product.

Ami Ohayon’s last blog post..From Jerusalem to Boston
House Signs Says:

September 8th, 2008 at 5:05 pm

Google is a superior product in itself, and it doen’t need to be pushed on to people. It is naturally used because of how superior the product is against the other search engines. Although it would be nice to see another search engine give them a run for their money.

House Signs’s last blog post..House Signs – Hand Painted Signs by Trudy Silcox
Speak Now, $100 Billion Ad Group, or Forever Hold Your Peace | John Paczkowski | Digital Daily | AllThingsD Says:

September 8th, 2008 at 5:45 pm

[...] of this deal is a negative for advertisers and the marketplace.” A harsh indictment and one difficult for Google or the DOJ to shrug off when its coming from a group of companies that spen…. Print [...]
Computerworld: Major advertisers protest Google-Yahoo search advertising deal « 5-4-1 Aesthetic Says:

September 8th, 2008 at 7:34 pm

[...] In a post on MarketingPilgrim, a blog site that focuses on Internet advertising, Andy Beal said that the sheer volume of advertising dollars spent by ANA members like American Express, Bank of America, American Airlines, Anheuser-Busch, General Motors, Hasbro and Johnson & Johnson might catch the eye of DOJ regulators. [...]
Utah SEO Pro Says:

September 9th, 2008 at 12:11 am

Interesting state of bribery. Still don’t think that influences the principle of the decision of stakeholders.

Utah SEO Pro’s last blog post..Building an SEO Friendly Site – SES San Jose 2008 Presentation
iPod Fan Says:

September 9th, 2008 at 7:20 am

I am against the deal purely over because of increasing concerns over the way in which Google handles users privacy.

Did you know Google records every keystroke typed into the bar on Chrome, it’s new browser.

Scary stuff.

John
Tiffany Says:

September 9th, 2008 at 9:37 pm

Agree with Utah…Not so sure if the stakeholder will be tempted with that amount.

Marketing Pilgrim