AOL in Talks With Multiple Providers for Search Deal

The firm's exclusive multi-year deal with Google is almost up, so what's next?

AOL is currently in talks with at least three companies regarding the provision of search technology on its sites, according its CEO Tim Armstrong. The firm’s current search deal with Google, worth around $700 million for the past two years, is set to expire in December.

Speaking at the Fortune Brainstorm Tech conference in Aspen, Armstrong said there were more than two contenders in the race for the contract, stating, “Search is heating up from a multi-partner space – we are not talking to two companies,” Fortune reported. An AOL spokesperson said the company would not comment on whether those negotiations are likely to result in an exclusive search provider, or whether it may attempt to pursue relationships with multiple partners.

AOL’s current relationship with Google will expire on December 19th, leaving the company open to discussions with other providers, most likely Microsoft. Since Google is a known quantity, it’s in AOL’s interests to eseither partner with the company again or to ensure it negotiates substantially more favorable terms with another provider to compensate for lower performance.

A relationship with AOL would give Microsoft a combined Bing, Yahoo and AOL search alliance with a combined market share well over 30 percent of searches, according to comScore, granting the entity further scale. Microsoft and Yahoo have frequently expressed the benefits afforded by such scale, and the importance it plays in improving the strength of their product for both consumers and advertisers. From AOL’s perspective, perhaps 30 percent is enough to challenge the type of return it’s been receiving from its existing Google partnership.

Another possible scenario is that AOL will choose different partners for different aspects of its search offering. For example it may opt for Google or Microsoft to handle the bulk, while partnering with a niche provider for specific verticals or purposes, such as local. Mobile is also a consideration, given that Yahoo’s mobile search product was omitted from its deal with Microsoft, and that it has continued to strike partnerships with mobile handset manufacturers and publishers. In April, for example, it announced a partnership to pre-load its search application, among others, on millions of Samsung devices, including those running Google’s Android operating system.

Subscribe to get your daily business insights

Whitepapers

US Mobile Streaming Behavior
Whitepaper | Mobile

US Mobile Streaming Behavior

5y

US Mobile Streaming Behavior

Streaming has become a staple of US media-viewing habits. Streaming video, however, still comes with a variety of pesky frustrations that viewers are ...

View resource
Winning the Data Game: Digital Analytics Tactics for Media Groups
Whitepaper | Analyzing Customer Data

Winning the Data Game: Digital Analytics Tactics for Media Groups

5y

Winning the Data Game: Digital Analytics Tactics f...

Data is the lifeblood of so many companies today. You need more of it, all of which at higher quality, and all the meanwhile being compliant with data...

View resource
Learning to win the talent war: how digital marketing can develop its people
Whitepaper | Digital Marketing

Learning to win the talent war: how digital marketing can develop its peopl...

2y

Learning to win the talent war: how digital market...

This report documents the findings of a Fireside chat held by ClickZ in the first quarter of 2022. It provides expert insight on how companies can ret...

View resource
Engagement To Empowerment - Winning in Today's Experience Economy
Report | Digital Transformation

Engagement To Empowerment - Winning in Today's Experience Economy

1m

Engagement To Empowerment - Winning in Today's Exp...

Customers decide fast, influenced by only 2.5 touchpoints – globally! Make sure your brand shines in those critical moments. Read More...

View resource