Computerworld
Big advertisers protest Google-Yahoo search deal
Google and Yahoo 'surprised' at opposition
Heather Havenstein  16 September, 2008 11:18

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

Login or register to link comments to your user profile, or you may also post a comment without being logged in.
The content of this field is kept private and will not be shown publicly.
Enter the fully qualified URL, eg. http://www.example.com/
  • Web page addresses and e-mail addresses turn into links automatically.
  • Allowed HTML tags: <a> <em> <strong> <cite> <code> <ul> <ol> <li> <dl> <dt> <dd>
  • Lines and paragraphs break automatically.

More information about formatting options

Zones
Zone logoZones provide focussed content from Computerworld and leading technology partners.
Newsletter Subscription
Newsletter Subscription
Sign up for our Computerworld newsletters!
Syndicate content Syndicate content
 

Computerworld Webinar

Thursday, June 11th, 2009
10:30am EST (Sydney, Australia)
Screening at your PC

Computerworld is hosting a 30 minute live webinar to help you to learn how unified communications can save you money, foster innovation and business agility by making it easier for people to find, reach and collaborate with one another.

Register Now

Computerworld Community Comments
Whitepaper

LANPlanner | Ensuring High Performance WLAN Networks

Learn how the Motorola LANPlanner facilitates prompt and precise planning and the design and measurement of robust 802.11a/b/g/n networks. Download this paper now to discover how to take wireless network performance to the next level.

Enterprise IT Buyer's Guide
Find Technology Vendors Fast
 
Find vendors by name | Find by category
Sponsored Links
 
Send Us E-mail | Privacy Policy
Features List | Media Kit | Advertising | Contact Us

Copyright 2009 IDG Communications. ABN 14 001 592 650. All rights reserved.
Reproduction in whole or in part in any form or medium without express written permission of IDG Communications is prohibited.