Microsoft and Yahoo have updated their partnership in regards to search and advertising. This could work out well for Yahoo, who will now be able to run their own ads on desktop and mobile searches. Previously, Yahoo was required to pull 100% of its traffic from Bing marketplace ads. Now, Yahoo are required a majority of 51% of monetized ads to come from Bing. Also in the deal, Yahoo’s desktop search will be powered by Microsoft’s search algorithm.
The roles of the partnership have changed. Yahoo is no longer in charge of the sales relationship of Bing search ads, with Microsoft taking control. Previous to the original deal in 2009, Bing’s search ads weren’t doing so well compared to Yahoo’s or Google’s ads. For users who pay for advertising on Bing, it is possible that you will also find yourself on Yahoo’s desktop searches or its mobile search (Although showing up in Yahoo’s mobile searches is unlikely to be an option chosen by Yahoo for Bing ads.). Those who use Yahoo won’t find their ads popping up on Bing.
For Yahoo, being able to run its own ads will be more expensive but likely to pay off if the right decisions are made. Yahoo will also be able to form partnerships with third parties for other search products. The deal still remains for these platforms, with Yahoo being required to run 51% for Bing and 49% for Yahoo.
In a statement from Satya Nadella, CEO of Microsoft, he says that the partnership has so far benefited both Microsoft and Bing’s customers. “Our partnership with Yahoo is one example of the diverse partnerships we’ll continue to cultivate in order to have the greatest impact for our customers.”
Marissa Mayer, Yahoo’s CEO, has said that the past few months were spent working with Satya to design an enhanced user experience and to innovate Yahoo’s search business. Mayer says in the new partnership deal will help have an impact on customers who will benefit from the diverse partnership between Yahoo and Bing.
Yahoo also has their advertising platform Yahoo Gemini that delivers non-search native ads. Combining search ads and non-native search ads will have Yahoo in control of its advertising, meaning it will be motivated to improve its advertising revenue. Users of Bing and Yahoo’s search advertising will need to consider their needs follow this updated partnership. Being with Bing will mean appearing on Bing and possibly Yahoo. While being with Yahoo will mean Yahoo’s search your only platform.