Last week, Yahoo and Microsoft announced that they are revising the terms of their search partnership in hopes to “improve the search experience, create value for advertisers and establish ongoing stability for partners”, according to the Yahoo press release.
First, some background on the partnership. Yahoo and Microsoft formed a partnership in 2009 in an effort to help provide advertisers with a viable alternative for online search advertising by combining the technology of both companies. Based on the original terms of the agreement, Microsoft would provide paid and algorithmic search services on desktop to Yahoo exclusively. Additionally, a revenue sharing agreement where Microsoft pays Yahoo a percentage of Bing Ads revenue delivered from Yahoo searches.
What will change? The changes to the partnership agreement will come into effect starting in Q3 2015. These changes include:
- In an effort to increase adoption for its Gemini platform, Yahoo Mobile search will be served 100% via Yahoo Gemini. Today, Bing primarily serves position 1 for mobile search results.
- Previously, Bing served all Yahoo Desktop search impressions. Under the new terms, Bing will now serve 51% of impressions, with the remaining 49% left to the discretion of Yahoo as to how they will be served.
- Microsoft will develop their own sales force to sell Bing ads to enterprise and SMB advertisers. Meanwhile, Yahoo will be selling desktop ads through Gemini, making it the go-to platform for all ads on Yahoo.
With these changes signifying Yahoo’s decision to take a greater ownership over their search ads, this is a great time to consider including Gemini in your advertising strategy. As Gemini’s presence in the advertising world continues to grow, it is worth looking into expanding your audience reach with this versatile platform that provides advertisers with the ability to advertise across mobile and desktop devices for both search and native ads. For more information on Gemini, please refer to this blog post: Native Joins Search with Yahoo Gemini.
This article was syndicated from Business 2 Community: Yahoo and Bing Update Their Relationship Status
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