Yahoo! has updated it’s blog to reflect the Yahoo! and Microsoft adCenter search alliance a.k.a. partnership. Basically, for the next 10 years Bing will be the host for Yahoo! search results. Yahoo! will continue to appear the same on the front-end, but on the back-end it will be powered by Microsoft.
The benefit Microsoft gains is apparent. They become a larger search provider (and the second largest in the same breathe), plus they receive a commission on ad serves for Yahoo! I wonder what the trends are going to look like in coming months, will Microsoft be on top? But let’s be honest, a lot of Yahoo! visits come from non-search, but so does Microsoft.
It might seem Yahoo! is a clear loser in the deal, because their search technology will ultimately be outsourced making them nothing more than a second-tier search engine, but truthfully Yahoo! has managed to stay in the game without needing to cover overhead and therefore add more dollars to research. Imagine if for the next 10 years Yahoo! focus on research and building the best engine on the planet, they’ve freed up the money to do just that! It easily cost millions (if not billions) a year to own and operate multiple data centers. Since, Yahoo! will not be the operation host for their search engine servers and hardware they can have much less data centers saving plenty of dough! I think Yahoo! was smart in this deal and may be a company to watch in the future.
Other than organic search, paid search will be affected and therefore all paid marketing accounts will need to be ported over to Microsoft adCenter. Yahoo! claims to make this process smooth since they developed tools to assist. The three main takeaways from this transitional update are:
- It’s time to port your Yahoo! Search Marketing campaigns to Microsoft adCenter. I wouldn’t suggest creating new ad campaigns at Yahoo!
- Transition overhaul will be attempted before 2010 holiday season
- The process is stated to be smooth. Tools have been developed to automate the transition
For additional information visit the Yahoo! Transition Center which will guide you through the transition process.