expertSEM

Last Thursday, Google announced that they agreed to a non-exclusive search services agreement with Yahoo! The agreement “gives Yahoo! the ability to use Google’s search and contextual advertising technology through its AdSense for Search and AdSense for Content advertising programs.”

The question is who does this benefit? So far, it seems this agreement will benefit not only Google, Yahoo!, but the users and consumers as well.

As for Google, this makes complete sense because it will give them more control over the marketplace and their main competitor. They will have access to Yahoo’s inventory while making money off them at the same time. This agreement also puts an even larger portion of search in Google’s hands.

For Yahoo!, this gives them access to Google’s technology and will allow them to display more relevant search results, which in turn should generate more clicks and ad spend from advertisers. Yahoo! expects this deal to generate an estimated $240 to $450 million in operating cash flow.

According to Google, this should turn out to be a great deal for users of Yahoo and Google. Advertisers will have a better opportunity to reach their target audience more efficiently and consumers will be able to see more relevant ads when searching.

Hopefully, Yahoo! will take advantage of this agreement and use the extra operating cash flow to move their technology forward and improve their search services to Advertisers, Publishers and Consumers.