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Yahoo Draws on Google's Ad Network to Drive Growth

Yahoo Draws on Google's Ad Network to Drive Growth

Yahoo is looking to increase its revenue via targeted online advertising, and it looks like they'll be counting on their biggest rival to do so.

A non-exclusive arrangement was announced on Wednesday that revealed Yahoo's partnership with search engine giant Google, using its massive online advertising network to show messages that specifically relate to the subject matter being perused by the consumer.

Google already distributes ads in this manner to thousands of websites, a service that has helped to establish it as the dominant force in the search engine industry.

Meanwhile, Yahoo has been struggling for years to attract investment from advertisers, despite the growing trend for increasing marketing budgets for online campaigns. Yahoo's revenue had fallen in three consecutive years before experiencing a small gain in 2012.

Two rivals co-operating in this manner might sound peculiar, but Google made around $12.5billion in ad sales last year, so it isn't hard to see why Yahoo are wanting to draw on their expertise to strengthen their own advertising network.

A significant factor in the development of this arrangement may have something to do with Yahoo's most recent, and major, appointment. Marissa Mayer was a senior executive at Google for many years before she became CEO of Yahoo last year, and it seems that the good relationship she has maintained with her previous employers may have contributed to the success of this deal.

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