Last week, Yahoo! announced it had signed a non-exclusive global agreement with Google to serve contextual ads on Yahoo properties and some co-branded websites. Last time the Silicon Valley giants attempted a strategic partnership, the deal was struck down by antitrust regulators at the U.S. Department of Justice. So, what is different this time?
The answer lies with the mastermind behind the negotiation: Yahoo’s CEO, and ex-Google executive, Marissa Mayer.
This deal is a sign that Mayer’s leadership is starting to have positive outcomes. Rather than contributing to the long-standing rivalry between the two companies she has chosen to build bridges. Her experience and knowledge of Google were key t negotiating this partnership, and will most likely serve as solid foundation for Yahoo to have the success that was not possible back in 2008 when it first attempted a search advertising partnership with Google.
Fast forward to 2013 and Yahoo and Google are tying up on display, as opposed to search. What does this mean for both companies? What does it mean for display advertising? (more…)