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Advertisers cry foul over Google / Yahoo online advertising deal

By Andrew Redfern @ 8th September 2008 3:53 pm

Internet news sources are today reporting that The Association of National Advertisers in the US has announced that it has sent a letter to the Assistant Attorney General Thomas Barnett. The letter states their objection to the proposed online advertising partnership between Yahoo! and Google.

Yahoo have countered with a statement saying the deal poses no problem for advertisers because the prices charged for the online adverts are not set by Google’s adWords system. Last month it was announced that ads on the Adword pay per click advertising system would no longer have a minimum price threshold for showing on the search results. This change meant that the system is now totally based on market forces rather than a price set by Google itself.

The proposed deal is thought to be worth approaching half a billion USD in extra revenue to Yahoo, under it’s terms Google adWords ads would be displayed alongside Yahoo’s own Web search system Yahoo Search Marketing.

According to Reuters Google spokesman Adam Kovacevich said “numerous advertisers have recognized that this agreement will help them better match their ads to users’ interests, and that ad prices will continue to be set by competitive auction. While some have raised questions about the agreements’ potential impact on ad prices, advertisers care far more about getting a good return on their advertising dollar than they do about buying cheap ads that don’t bring in customers, and this agreement will clearly help advertisers reach Yahoo users more efficiently,”

The US anti-trust commission are looking into the deal however Google and Yahoo are adamant that the deal does not contravene any rules. The arrangement non-exclusive and only covers North America.

Would you like to know more about pay per click advertising? If so, contact Hit Search, SEO and Google adWords qualified PPC specialists, on 0845 643 9289. Remember, its a big world out there, make sure you become visible.

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