Microsoft, Yahoo & AOL strike online ad deal
Although the three companies will remain independent and compete against each other with separate sales teams, the non-exclusive partnership, which begins in January 2012, allows them to form a pact in selling less-prized ad space.
The move comes in response to Google and Facebook dominating the online ad marketing space. Google strengthened its position with the acquisition of DoubleClick’s ad service in 2008 which provided the internet giant with a catalyst to jump from text ads into display advertising.
Facebook’s 800 million users offers an unquestionable platform into display advertising with a 16% share of the market. Google has also experienced a 2% increase since 2008 to 9%, while Yahoo has dropped from 18% to 13% in the same timeframe. Microsoft has 5% and AOL around 4%, according to Emarketer.
Microsoft, Yahoo and AOL are all experiencing losses in their online divisions. Microsoft has lost $7bn since June 2008 and the others are steadily dropping. The realignment aims to save money and sell more advertising among the three organisations.
Yahoo executive vice-president Ross Levinsohn stated the deal was a “fundamental rethink of how our digital media is bought and sold.”
Dean Kelly, London