AOL, Yahoo!, and Microsoft Partnering On Ads

Posted Sep 14, 2011

The three rival companies AOL, Inc. (NYSE:AOL), Yahoo! Inc. (NASDAQ:YHOO), and Microsoft Corporation (NASDAQ:MSFT) are partnering with each other on ad sales. The three are partnering in an effort to effectively compete against Google. The three companies are also aiming to gain back ad spending that ended up in the hands of other ad networks.

AOL, Yahoo!, and Microsoft executives briefed web publishers and ad buyers about the partnership at a dinner presentation in Manhattan earlier this week. AOL, Yahoo!, and Microsoft is working with big web properties to share ad inventory directly. AOL, Microsoft, and Yahoo! will be selling each other’s “Class 2 display” inventory, which includes graphic ads that they cannot sell on their own.

The three companies will be sharing revenue on the ads sold. This will help the three companies create more revenue than having third-party ad networks selling their inventory.