Yahoo, Google Sign Ad Deal

Yahoo and Google are going to work together. The companies announced that they have signed a deal which will bring Google’s advertising programs to Yahoo’s websites.

MarketWatch reported, “Yahoo said in a statement it recently signed a nonexclusive agreement that will have Google displaying ads on unspecified Yahoo Web properties ‘and certain co-branded sites’ using Google’s ad programs for both traditional computers and mobile devices. Those programs serve up ads that are related to the content on a particular site. ‘By adding Google to our list of world-class contextual ads partners, we’ll be able to expand our network, which means we can serve users with ads that are even more meaningful,’ Yahoo said in a statement.”

TechSpot’s Jose Vilches observed, “[Yahoo] has been struggling to attract more advertisers in recent years, with revenue falling for three consecutive years before registering a small gain last year. The tie-up may indicate some insufficiency of Yahoo’s alliance with Microsoft, which currently handles most of its larger search-driven advertising as part of a long-term deal signed in 2009, but it’s unclear if it will lead to something bigger.”

An AP report noted, “Analysts have been predicting that Mayer’s old ties with Google might eventually lead to a closer relationship with Yahoo.”

Bloomberg BusinessWeek’s Douglas MacMillan added, “Yahoo jumped as much as 6.3 percent to $21.10 in extended trading following the announcement of a Google partnership. Earlier the shares (YHOO) rose 1 percent to $19.85 at yesterday’s close in New York.”