As the October search ad partnership between Google and Yahoo! draws near, Yahoo! have become increasingly concerned about proving the deal will be beneficial for users and advertisers.
The deal has come under fire in recent weeks because people concerned claim that it will cement Google’s already huge lead in search advertising.
Hilary Schneider, executive vice president of Yahoo U.S today defended the claims at a three hour media conference claiming that the partnership would have some solid benefits for advertisers. From Businessweek:
Her example: Search for “red roses in Birmingham Alabama” and you get no ads on Yahoo search results page. Google’s search results page has 11 advertisers. So by hooking up with Google, Yahoo is giving those advertisers a chance to reach Yahoo users as well as Google users and potentially get more customers. In Yahoo’s view, says Schneider, “We are able to essentially create more access and better ROI for the advertisers.”
Schneider later shrugged off concerns that the deal would increase competition amongst advertisers and potentially raise click prices. “Advertisers are rational and bid what they see value for,” she said.
It’s clear why Yahoo! is so keen to push this deal through, their search advertising business is suffering and they want to cash in on Google’s dominance. The deal is still yet to be approved, but based on the media conference today Yahoo! seems very confident.