Big advertisers protest Google-Yahoo search deal

Google and Yahoo 'surprised' at opposition

The Association of National Advertisers has called on the US Department of Justice to reject a planned point search advertising program by Google and Yahoo.

The New York-based trade group -- which represents 400 companies that spend more than US$100 billion annually on advertising -- said "a Google-Yahoo partnership would control 90% of national search advertising inventory."

Under the proposed four-year deal announced in June, advertisers would pay Google for ads that appear with Yahoo search results, and then Google would pay a portion of the proceeds to Yahoo. Yahoo estimated that the deal would generate US$250 million to US$450 million during its first 12 months, and up to US$800 million annually thereafter.

In a note posted on the ANA Web site, President and CEO Bob Liodice said his group is concerned "that the partnership will likely diminish competition, increase concentration of market power, limit choices and potentially raise prices for high quality, affordable" search ads.

Although Yahoo and Google contended that the deal doesn't need regulatory approval, they did agree to delay its implementation for three and a half months after the June 12 announcement so the Justice Department could review its terms.

Internet marketing consultant Andy Beal, said in a blog post that Google and Yahoo are likely surprised at the advertising group's opposition to the deal. The clout of the ANA membership could easily affect the DOJ's decision, he noted.

"Google and Yahoo were prepared for some opposition to the deal -- hence agreeing to give regulators 100 days to review the deal -- but they probably weren't expecting such stout opposition," Beal said.

Both Yahoo and Google directed reporters to Web sites containing news stories with information on advertisers that support the deal.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags google/yahoo search advertising deal

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Heather Havenstein

Computerworld
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?