It was hypothesized not long ago that Yahoo would either have to accept and acquisition offer from Microsoft or embrace Google’s ad network to stay afloat and profitable. Last week, Yahoo pass again on Microsoft’s offer sending a stern letter in response. Today, Yahoo announced that they’re going to embrace Google and are performing a small test of their Adsense platform fulfilling what many deemed as inevitable. The test, although significant, is only expected to last two weeks and only incorporate 3% of Yahoo’s market.
Microsoft was quick to issue a response to the news saying that that if Yahoo were to offer Google ads, it would consolidate 90% of the search advertising market in Google’s hands.
For those currently advertising in search, it would create a single point in which to advertise on both major search portals and their individual services (Yahoo is currently the leader in online email users) cutting down on the need to advertise using two ad networks. The potential downside is that it does limit those advertisers who want to work with ad networks outside of Google. I can see both sides of the coin. Honestly, it’s a difficult pill to swallow for Yahoo, but necessary.
What do you think?