Yahoo/Google Deal Revision Would Give Marketers More Control

To appease Justice Department concerns about their search ads tie-up, Yahoo and Google have offered to cap what Yahoo can make through the deal at 25 percent of its total search revenue, the Wall Street Journal reports.

Perhaps a bigger deal for search marketers: The revised deal would let advertisers opt out of having their ads distributed on Yahoo results pages.

That would partly address concerns of some marketers that they’ll wind up bidding against themselves, but it may also reduce the available Yahoo inventory for those who choose to opt out.

As Kevin Lee put it back in September, “In order for [Yahoo] to even to consider serving an ad out of Google, that ad has to be 15 percent more expensive,” to allow for Google’s cut.

Yahoo’s extra revenue from each ad served by Google comes at the expense of brands that bid on both platforms, and so letting those brands abstain from ad syndication between the parties. Yet having the option not to pay the higher price to appear on Yahoo SERPs doesn’t mean they’ll still get in at the lower price.