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Microsoft-Yahoo! will be an alternative for advertisers, say media planners

31-July-2009
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Microsoft-Yahoo! will be an alternative for advertisers, say media planners

After months of speculations on whether the two would get together or not, Microsoft Corp and Yahoo! Inc on Wednesday, July 29, 2009, signed a 10-year Web search deal to better compete against market leader Google Inc. The agreement is aimed at improving the web search experience for users and advertisers and provides a sustained innovation to the industry, thus Microsoft will now power Yahoo! Search, while Yahoo! will become the exclusive worldwide relationship sales force for both companies’ premium search advertisers.

Under the 10-year license, Microsoft will be able to integrate Yahoo’s core search technologies into its current Web search platforms, while Yahoo! will focus on its core business of providing consumers with the ‘world’s favourite’ online destinations and web products. This agreement also aims at providing a viable alternative to advertisers as this deal is said to combine Yahoo! and Microsoft search marketplaces so that advertisers will no longer have to rely on one company that dominates more than 70 per cent of all search.

exchange4media spoke to some media planners to get their take on the India impact and whether this deal now provides the advertisers with a better alternative.

According to Divya Radhakrishnan, President, TME, “From the India perspective, if they do offer combination deals, only then will the two become a serious alternative for advertisers.”

Kunal Jamuar, GM, Madison Media, noted, “This deal will certainly have an impact in Google’s revenues with regards to search, however, the sealed deal also means that advertisers will now have a strong alternative hence it is good for the media industry as well.”

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