18 July 2008 | Team Tamar

Yahoo! and Google deal comes at a cost to marketers

With the price of petrol, food, electricity (in South Africa) sky rocketing, it now looks like online marketing will follow suit with reports that the Google/Yahoo sponsored search deal will increase Yahoo keyword prices.

The deal currently only
applies to the US and Canada but a rise in overall search
advertising costs is speculated following the news of a Google/Yahoo sponsored
search partnership, reports
US search company
SearchIgnite recently released a study
into the pricing impact of the proposed Google/Yahoo sponsored search

Titled “Potential Impact of Google-Yahoo Partnership &
Cost to Marketers” the study
(.pdf),concludes that Yahoo’s keyword ad prices should increase by an
average of 22 percent. This assumes a profit maximization strategy is
Again this currently only
applicable in the US and Canada but its
worth keeping an eye on as its likely to result in search strategies being adjusted somewhere down the line.

Team Tamar

  • http://quirk.biz Matt

    Hi Myles,
    I’ve been following the Tamar blog ,and noticed you guys are big on education as well as a SA reference. Thought you might be interested in our new project
    We have just launched our own eMarketing text book – and we are very proud of it. It’s an open education initiative, all about sharing knowledge for the greater good 🙂