Search Marketing

Google-Yahoo! Partnership Advertiser Pricing Impact

July 16, 2008

Yesterday, 360i’s sister company SearchIgnite released a first of its kind empirical study on the potential pricing impact of the proposed Yahoo-Google search partnership on keyword prices for marketers on the Yahoo! platform. The study concludes that keyword prices on Yahoo! may increase by an average of 22%, assuming Yahoo! pursues a profit maximization strategy. However, projecting the actual increased cost for a given marketer is highly dependent on the proportion of spending across the three different types of keywords analyzed (head, tail and brand terms) and the ad ranking on the results page (e.g. first position vs. fifth position). The report was released on the same day that Congress held a hearing on the proposed Google-Yahoo! deal, with testimony from marketers as well as Google, Yahoo! and Microsoft.

The SearchIgnite report was widely covered in the media, including The New York Times, Wall Street Journal, Adweek and MediaPost.

>>Download a free copy of the report.

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