Regardless of outcome, Google has won.
You may have read yesterday evening that the Yahoo (NASDAQ: YHOO) and Google (NASDAQ: GOOG) advertising deal may not go through, thanks to the U.S. government getting involved.
Bad new for the companies? Not for Google, which played this perfectly.
You see, if Google got the deal then it would have an ad deal with Yahoo that would help fill its coffers while rendering Yahoo’s advertising platform less valuable. Yahoo advertisers would gradually defect, leaving Google as the only tier 1 search ad network.
If Google loses the ad deal, which looks more likely, it also wins. The deal rendered Yahoo useless for several months. The deal also took the Microsoft (NASDAQ: MSFT) option — the option that scared Google the most — off the table in the short term. Microsoft wouldn’t want to get involved if Google is involved, and it gave Jerry Yang a reason to say no to Microsoft’s courtship. Also, you can be sure that Google acquired competitive intelligence during the process.
So Yahoo is even weaker than it was before. Heads, Google wins. Tails, Google wins. Yahoo loses both ways.
Rob Sequin says
Very good summary. You nailed it.
Yahoo can’t do anything right for years now and now they are talking with AOL?
Yahoo and AOL? Whoopee! Big yawn there.
Two former giants going out with a whimper. They will sink together and blame each other in court. I can see it now.
Google doesn’t need Yahoo. It would be an anchor for them.
EM @KING.NET says
It’s always good to have alternative ad provider even the revenue is not comparable to Google.
Hmmm. I wouldn’t discount or underestimate the power, intelligence or prowess of Yahoo. The site still had tens of millions of viewers every day. The brand is solid on main street (perhaps not wall street). People love this site. It has a great deal of solid, original content. One of the largest email user bases. By the way, no, I do not have stock in Yahoo. I simply think the company is solid and not getting the credit it deserves.
I think Yahoo still has a chance but they must learn to appeal to the public more, take advantage of publicity stunts, etc…..
Why are there no tv, radio, or Internet commercials for Yahoo anymore? Are they so broke they can’t afford an ad campaign.
They need to reach out to advertisers and the public and scream, “Hey, were still here and we have a good search engine”.
I honestly think Yahoo has better search, but there are legions that would disagree with me. I think Google just has won the mind share and that is why they are kicking ass.
Yahoo’s Panama definitely targets ads to domains better than Google, so it is just a matter of Yahoo not doing a good job of reaching out to advertisers and surfers.
Rob – I think the expression is “this merger is like two old ladies helping each other cross the street”
Yahoo is a solid company? Get real…I don’t remember the last thing they did right in a long long time.
They have potential to do well but they are all talk… I wish them all the best though.
Domain Offerings says
Well I have advertised with both and I think there is no competition between AdWords and Yahoo Search Marketing. Google wins hands down so in this arena there is only one choice in my opinion. I don’t have any experience with other advertising avenues in which Yahoo may excel.