Traditionally, Yahoo and Google have been competitors. Whoever is writing the Google guide should know to never rule anything out. Recently, it was announced that Yahoo and Google have come to an agreement for Yahoo to begin displaying Google ads throughout its global properties and branded websites. Yahoo will continue to display ads from other competitors, such as Bing, since the deal with Google is non-exclusive.

Quite Simply … Google’s Platform is Better

Most search engine marketers agree that Google’s AdWords platform and Ad Network is superior to its competitors. One of the reasons it may be viewed as superior, however, is that Google’s market share means that marketers’ ads reach more people. Currently, for every 1 Bing user there are 100 Google users. Google’s AdWords may have the appearance of superiority based on traffic volume alone.

The Agreement Dissected

Under the terms of the agreement, Google will receive a chunk of Yahoo’s unsold inventory and in return Google will begin displaying small business ads on websites and properties maintained and owned by Yahoo. Google AdSense will be the delivery mechanism, which will place relevant ads to websites. Mobile was not excluded from the deal either. Mobile contextual ads will be delivered to Yahoo mobile sites using Google’s AdMob mobile application.

Google AdSense has allowed publishers to monetize their content for a number of years. With the expansion into Yahoo websites, publishers, their content, and their AdSense ads will be presented to an even larger audience. A larger audience means more money for all parties involved, including the content publishers.

Yahoo Benefits From An Expanded Ad Network

Yahoo will benefit in the agreement by immediately expanding its ad network exponentially. Yahoo users will be exposed to more relevant and meaningful ads. For example, if a user is shopping for running shoes, then they will now see on Yahoo ads relating to the purchase of running shoes, as opposed to seeing ads related to discount oil changes for their car.

Most industry insiders consider this a win-win agreement. Insiders feel that anything that will allow for the further expansion of Google’s AdSense network is a win for buyers. The inclusion of Google ads will also bolster the traffic and revenues for Yahoo’s publishers … a win for publishers. Yahoo will immediately expand its ad network and become more relevant again in the search industry.

The Google handbook says that Google owns the lion share of the market and should absorb its competitors. The new agreement between Google and Yahoo for Yahoo to begin displaying Google ads across its sites is a move that few could have predicted some years ago. With the agreement, Google wins with the increased usage of AdSense. Yahoo wins from the immediate expansion of its ad network. Publishers also win through increased exposure of their ads and better monetization of their content.