Posted September 11, 2008 5:17 pm by with 10 comments

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Yahoo offered a three-hour media day today as the DoJ is looking a bit closer at the pending ad deal between Yahoo and Google. Yahoo US EVP Hilary Schneider defended the deal, stating that it will give advertisers access to more search engine users.

Citing an example of [red roses in burmingham alabama], Schneider pointed out that while there’s 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, that’s cool. But let’s 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 didn’t know how to get onto Yahoo’s 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 they’ll be able to extend their audience without much further effort (probably).

But what about advertisers who opt out because they’ve tried Yahoo and found that it wasn’t worth the cost—either the traffic Yahoo generated was lower quality or low enough volume that they simply didn’t 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. They’ve already pledged $100 billion to fighting the deal, but they’re 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, Renée,” not “Don’t walk away, Renée”).

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, they’re 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.

  • Couldn’t one just uncheck the box that says to have your ads delivered to their search partners and keep your ads in Google? Am I just stating the obvious here or am I missing something?

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  • Jordan McCollum

    I really hope there’s the an opt out, but I don’t remember hearing about it so far.

  • Drama…this will go on for awhile.

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  • BRK

    More access to search engines… Riiiiiiight. I was hoping for a Yahoo and Microsoft merger but Yahoo just seems to think that MS is the plague. Sorry, but Google is the big brother now and regulators should be damn worried. It’s the devil you know or the devil you DON’T.

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  • Yahoo is up the creek without a paddle on this one. There is some big money backing the action. The guys who financed that are not morons.

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  • BRK

    Carl Icahn had loaded up on Yahoo shares. He must be livid and is trying to oust the board of directors – head among them is Chief Yahoo Jerry Yang.

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  • Jordan, what I’m saying is, there already IS an opt out. You have always been able to control whether your ads show on just Google or also on their search partners. You can already opt in or out of showing your ads on AOL, why would Yahoo be any different?

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  • mat

    I thought it was only listings that where shared not adds?

  • It will be interesting to see how this one all ends up, I’d say Google has the upper hand here being the more powerful network, do keep us updated on the results.

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  • Interesting article but I wonder what steps could be implemented against googles search engine business as it is not been built up from many mergers or aquisitions it is one company doing predominantly one thing?