Google Launches New Site To Discuss Yahoo! Deal Misperceptions

Posted Sep 26, 2008

Google Inc. (NASDAQ:GOOG) believes it is important that their advertising partnership with Yahoo! Inc. (NASDAQ:YHOO) should not be misinterpreted.  Google set up a website called to answer FAQs about concerns that people may have regarding the deal.  I embedded the presentation above.

“Some people have questions about our advertising agreement with Yahoo! and there are some misconceptions about it,” stated Karen Wickre of the Google Blog Team.  “So today we are putting facts about the deal on a new website to provide more information on the agreement and why it is good for consumers, advertisers and publishers. We’ll be updating the site regularly, so check back when you have additional questions.”

Some of the main bullet points of the presentation includes:
– A screenshot of how the Yahoo! homepage may look like with Google Ads embedded
– The partnership is similar to the one that and Google already have in place
– Yahoo! search today has little or few ads in their inventory compared to Google
– Yahoo! would have the right to use AdSense for Search and AdSense for Content for U.S. and Canada.  Yahoo! can control how much they want to use it
– It is a non-exclusive advertising supplier agreement.  Yahoo! has the right to find other ad partners.
– Yahoo! will allow interoperability between Yahoo! Messenger and Google Talk
– People that use Yahoo! won’t see a major change except for seeing more relevant ads
– Advertisers will have new ways to reach more target customers
– The deal is not a merger and does not remove a competitor from the playing field
– This deal does not increase Google’s search traffic
– This deal does not allow Google to control set prices for advertisers
– This deal does not give Google any equity stake in Yahoo
– Similar deals are taking place where Toyota provides Ford with hybrid engine technology and Canon suppliers laser printer engines to HP
– Yahoo! had supplied advertising inventory to Microsoft between 2003-2006 through the acquisition of Overture
– Google’s AdWords program won’t change in any way through this agreement, meaning that the advertiser still bids a price that they think is fair
– The DoJ and FTC have already endorsed similar agreements in the past, meaning non-exclusive commercial deals
– Last slide quotes several publications about the deal