Yahoo has just recently announced a deal with Google, Inc., regarding its search and advertising system. This announcement comes after Yahoo's renewal of its partnership with Microsoft, which presented the Mayer-led company with greater freedom regarding its search experience, by ending the exclusivity between the two companies.
As Geekwire reports, under the partnership, Google will provide search results, image-search services, and search-based advertisements for an unspecified number of queries made on Yahoo's search engine, both on its desktop and mobile platforms. Despite this, according to the regulatory filing, the deal is not exclusive, and Yahoo still has a power to use other search advertising services, like its current tie-in with Microsoft.
The filing further reads:
Yahoo may use Google’s services on Yahoo’s owned and operated properties (“Yahoo Properties”) and on certain syndication partner properties (“Affiliate Sites”) in the United States (U.S.), Canada, Hong Kong, Taiwan, Singapore, Thailand, Vietnam, Philippines, Indonesia, Malaysia, India, Middle East, Africa, Mexico, Argentina, Brazil, Colombia, Chile, Venezuela, Peru, Australia and New Zealand.
Google will pay Yahoo a percentage of the gross revenues from AFS ads displayed on Yahoo Properties or Affiliate Sites. The percentage will vary depending on whether the ads are displayed on U.S. desktop sites, non-U.S. desktop sites or on the tablet or mobile phone versions of the Yahoo Properties or its Affiliate Sites. Yahoo will pay Google fees for requests for image search results or web algorithmic search results.
This announcement also follows Yahoo's recent earnings for the third quarter of this year, where the company raked in only a total of $76 million. Through the deal, the company is provided with "additional flexibility to choose among suppliers of search results and ads." Furthermore, the investor relations report said that Google's offering complements Microsoft's services that they utilize, as well as Yahoo's own search technologies.
The agreement is valid until the 31st of December by the year 2018.
Microsoft, in a response to Geekwire's inquiries, offered a few statements about Yahoo's agreement with Google: "We remain committed to the Yahoo syndication partnership and will continue to serve the majority of Yahoo traffic as outlined in our contract extension," the Redmond company stated. " Yahoo is a valued partner and we look forward to continuing to serve our advertising customers through the Bing Ads marketplace."