Big advertisers protest Google-Yahoo search deal

Google and Yahoo 'surprised' at opposition

The Association of National Advertisers has called on the US Department of Justice to reject a planned point search advertising program by Google and Yahoo.

The New York-based trade group -- which represents 400 companies that spend more than US$100 billion annually on advertising -- said "a Google-Yahoo partnership would control 90% of national search advertising inventory."

Under the proposed four-year deal announced in June, advertisers would pay Google for ads that appear with Yahoo search results, and then Google would pay a portion of the proceeds to Yahoo. Yahoo estimated that the deal would generate US$250 million to US$450 million during its first 12 months, and up to US$800 million annually thereafter.

In a note posted on the ANA Web site, President and CEO Bob Liodice said his group is concerned "that the partnership will likely diminish competition, increase concentration of market power, limit choices and potentially raise prices for high quality, affordable" search ads.

Although Yahoo and Google contended that the deal doesn't need regulatory approval, they did agree to delay its implementation for three and a half months after the June 12 announcement so the Justice Department could review its terms.

Internet marketing consultant Andy Beal, said in a blog post that Google and Yahoo are likely surprised at the advertising group's opposition to the deal. The clout of the ANA membership could easily affect the DOJ's decision, he noted.

"Google and Yahoo were prepared for some opposition to the deal -- hence agreeing to give regulators 100 days to review the deal -- but they probably weren't expecting such stout opposition," Beal said.

Both Yahoo and Google directed reporters to Web sites containing news stories with information on advertisers that support the deal.

Comments

Post new comment

The content of this field is kept private and will not be shown publicly.
Users posting comments agree to the Computerworld comments policy.
Login or register to link comments to your user profile, or you may also post a comment without being logged in.
Related Coverage
Related Whitepapers
Latest Stories
Community Comments
Tags: google/yahoo search advertising deal
Whitepapers
All whitepapers
Sign up now to get free exclusive access to reports, research and invitation only events.
Featured Download
/downloads/product/235/softperfect-network-protocol-analyzer/

SoftPerfect Network Protocol Analyzer

Publisher's notes: SoftPerfect Network Protocol Analyzer is an advanced, professional tool for analyzing, debugging, maintaining and monitoring local networks and Internet connections. It captures the ...

Computerworld newsletter

Join the most dedicated community for IT managers, leaders and professionals in Australia