Julia Mackenzie: The End Might Really Be Nigh

Certainly for all the Yahoo partners..! In one of the most eyebrow
raising incidents I can remember since domain parking began, Yahoo last
night announced they were conducting a 2 week trial to serve Google
Adsense on 3% of their search queries.

Ok, not a great proportion of their overall capacity and a trial
that won’t last for a great length of time. However, let me tell you
from 1st hand experience that the only reason for conducting such a
trial is with a view to signing a longer, more comprehensive
arrangement. And look what happened when ASK did a similar thing.
Google’s modus operandi in these situations is such: Sign a 2 year deal
to serve Yahoo and Yahoo’s partner sites with ads. Then, once Yahoo’s
ad network and market share is irrecoverable, sign a 5 yr deal and
gazzump all the partners they no longer want.

Which means what? Well, the market would have just ONE major PPC
provider. Yahoo would add an extra $1bn in extra revenue for their
shareholders. Bidding on Google adwords would skyrocket. And Google
would be able to exert a “take it or leave it”? totalitarian approach
with partners. Scary stuff. Ive heard talk that Google have actually
considered pulling parking to all but the top traffic receiving domains.

Source: Julia’s Blog

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