In the year 2000, Yahoo was one of the Google partners. They became partners to carry both ads and search results. Though, the partnership sustained for many years, then Yahoo in 2004 developed its own in-house search technology and ad serving system. Partnership that is buzzing is between yahoo google.
After some time, Yahoo formally established its search deal with Microsoft in 2010 and gave up on its own internal search technology. This deal could not bring the results as expected by both the brand names. From past two years, Yahoo has been searching for various ways to generate more revenue from individual searches, not including its deal with Microsoft.
3-Year Latest Deal Between Google & Yahoo
On October 19, 2015, Yahoo! Inc., a Delaware corporation (“Yahoo”), and Google Inc., a Delaware corporation (“Google”), entered into a Google Services Agreement (the “Services Agreement”). The Services Agreement is effective as of October 1, 2015 and expires on December 31, 2018.
Though, it is officially a 3-year bond but it might discard early for numerous reasons.
Pursuant to the Services Agreement, Google will provide Yahoo with search advertisements through Google’s AdSense for Search service (“AFS”), web algorithmic search services through Google’s Websearch Service, and image search services. The results provided by Google for these services will be available to Yahoo for display on both desktop and mobile platforms.
The above statement reflects that Yahoo can reveal all the Google search results. Yahoo search results comprise of both editorial “free” listings and advertisements. Yahoo serves both, as it does not have its own editorial listings. Yahoo has no crawler, which combs the entire web for the content crisis. As per the Bing search engine provided by Microsoft, it is not affordable by Yahoo to showcase Google Ads against editorial listings.
Is it possible for Yahoo to cross 51% with Google?
Yahoo can effectively utilize Google results for both mobile as well as desktop. For desktop, Google could bring 49%, as the other 51% is guaranteed by Microsoft. Yahoo has no limit for mobile, as it becomes reliable to fully serve out Google results even at the cost of Gemini ads system.
Is Yahoo liberal?
“Under the Services Agreement, Yahoo has the discretion to select which search queries to send to Google and is not obligated to send any minimum number of search queries. The Services Agreement is non-exclusive and expressly permits Yahoo to use any other search advertising services, including its own service, the services of Microsoft Corporation or other third parties.”
The statement above states, Yahoo need not guarantee anything to Google. Yahoo can decide not to send any query, the decision completely depends upon Google.
Yahoo gets the percentage on Ads running on Google
Google will pay Yahoo a percentage of the gross revenues from AFS ads displayed on Yahoo Properties or Affiliate Sites. The percentage will vary depending on whether the ads are displayed on U.S. desktop sites, non-U.S. desktop sites or on the tablet or mobile phone versions of the Yahoo Properties or its Affiliate Sites. Yahoo will pay Google fees for requests for image search results or web algorithmic search results.
Yahoo will get a guaranteed percentage of Google ads running on Yahoo networks. However, the exact percentage depends upon the desktop or mobile. Interestingly, there is not even a slight guarantee by Google, that Yahoo will be paid.
Now, the final decision is that Yahoo is obliged to pay Google for using editorial (“algorithmic”) search results for web listings or images. This practice is to confirm and keep a check on Yahoo so that it does not show Google’s listings as its own against them. In such a case, Google without earning anything will be providing a service.
Image Credits: wired.com