Tuesday, April 17, 2007

Online Advertising - Yahoo responds


The battle for online advertising hotten's up every day . After Google's buy out of DoubleClick , its was interesting to see Yahoo respond today (17 April) with the announcement of its alliance with the McClatchy Newspaper chain and four other companies to its recently formed online ad-sharing network, this strength of the alliance includes 12 publishing companies, representing 264 U.S. newspapers, that are all set agreed to collaborate with Yahoo in selling advertisements and will feature Yahoo's search engine on their online editions, locking out Internet rival Google.

The recent war for online adverts started with the Viacom-Yahoo deal which I reported in 11 April , this was followed by the Google-DoubleClick deal on 15 April and the Microsoft anti trust motion against Google on 16 April . Within a week we have had 3 major deals and one anti-trust motion ...whoever though that the world was a dull place ....was WRONG.!!.... Frankly I was looking for a response from Yahoo particularily after the DoubleClick deal ...but was not anticipating it so fast ....seems like Yahoo has a well defined strategy to match Google blow by blow,..... which makes the story really fascinating . Now we have two sets of alliances (Google-DoubleClick combo vs Yahoo-Viacom-McClatchy) fighting for the USD 10 bn Internet advert market , I will definitely not hazard a guess on who will win eventually , but have a limited point to make ....the Google-DoubleClick deal gives Google a distinct advantage with introducing flash banner and video adverts while the Yahoo alliance is primarily strong in the text adverts arena ......whats next ....a billion dollar question ....whats Microsoft going to do ....is it going to push the anti-trust issue against Google to nullify the DoubleClick deal ....watch this space for more updates ......

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