Google defends Yahoo ad deal amid criticism

Google steps up its defense of its proposed ad deal with Yahoo.

Google has stepped up its defense of its proposed advertising deal with competitor Yahoo amid calls for the U.S. Department of Justice to investigate the agreement.

Earlier last week, the Association of National Advertisers and the World Association of Newspapers (WAN) called on the DOJ to look into the deal and its impact on Web advertising. The Paris-based WAN, representing 18,000 newspapers worldwide, also asked the European Commission's Competition Directorate and the Competition Bureau of Canada to investigate the deal.

"WAN believes that the competition that currently exists between Google and Yahoo is absolutely essential to ensuring that our member titles receive competitive returns for online advertising on their sites, and for obtaining competitive prices when they purchase paid search advertising," Gavin O'Reilly, WAN's president, wrote to the three agencies. "In our view, the proposed advertising deal between Google and Yahoo would seriously weaken that competition, resulting in less revenues and higher prices for our members."

Earlier this month, news reports said the DOJ has hired a prominent antitrust lawyer to look into the deal.

Google countered criticisms of the deal with three blog posts this week. Tim Armstrong, Google's president of advertising and commerce in North America, denied that the deal will drive up the cost of online advertising.

"Neither Google nor Yahoo set ad prices," Armstrong wrote in a Thursday blog post. "Ads are priced by an auction where an advertiser only bids what an ad is worth to them."

The deal will also help advertisers buy more relevant ads on Yahoo, Armstrong added. "The Google-Yahoo agreement will help advertisers convert more clicks into customers by showing more relevant ads on Yahoo, giving advertisers a better return for every dollar they invest," he wrote.

Yahoo has projected it will make up to US$800 million a year through the deal, and critics have questioned where that money will come from, if not from increased ad prices. Instead of raising prices, the deal will allow Yahoo to expand its ad market, Armstrong said.

"There are two main reasons Yahoo! is likely to earn more revenue," he wrote. "One, the deal will allow Yahoo! to show more ads on pages where they previously showed no ads or only a few ads. Two, advertisers will get more clicks on ads because the quality and relevance of those ads will be better."

Join the Good Gear Guide newsletter!

Error: Please check your email address.

Tags google/yahoo search advertising deal

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Grant Gross

IDG News Service
Show Comments

Essentials

Microsoft L5V-00027 Sculpt Ergonomic Keyboard Desktop

Learn more >

Lexar® JumpDrive® S57 USB 3.0 flash drive

Learn more >

Mobile

Lexar® JumpDrive® S45 USB 3.0 flash drive 

Learn more >

Exec

Lexar® Professional 1800x microSDHC™/microSDXC™ UHS-II cards 

Learn more >

Lexar® JumpDrive® C20c USB Type-C flash drive 

Learn more >

HD Pan/Tilt Wi-Fi Camera with Night Vision NC450

Learn more >

Audio-Technica ATH-ANC70 Noise Cancelling Headphones

Learn more >

Budget

Back To Business Guide

Click for more ›

Most Popular Reviews

Latest News Articles

Resources

PCW Evaluation Team

Azadeh Williams

HP OfficeJet Pro 8730

A smarter way to print for busy small business owners, combining speedy printing with scanning and copying, making it easier to produce high quality documents and images at a touch of a button.

Andrew Grant

HP OfficeJet Pro 8730

I've had a multifunction printer in the office going on 10 years now. It was a neat bit of kit back in the day -- print, copy, scan, fax -- when printing over WiFi felt a bit like magic. It’s seen better days though and an upgrade’s well overdue. This HP OfficeJet Pro 8730 looks like it ticks all the same boxes: print, copy, scan, and fax. (Really? Does anyone fax anything any more? I guess it's good to know the facility’s there, just in case.) Printing over WiFi is more-or- less standard these days.

Ed Dawson

HP OfficeJet Pro 8730

As a freelance writer who is always on the go, I like my technology to be both efficient and effective so I can do my job well. The HP OfficeJet Pro 8730 Inkjet Printer ticks all the boxes in terms of form factor, performance and user interface.

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Aysha Strobbe

Windows 10 / HP Spectre x360

Ultimately, I think the Windows 10 environment is excellent for me as it caters for so many different uses. The inclusion of the Xbox app is also great for when you need some downtime too!

Mark Escubio

Windows 10 / Lenovo Yoga 910

For me, the Xbox Play Anywhere is a great new feature as it allows you to play your current Xbox games with higher resolutions and better graphics without forking out extra cash for another copy. Although available titles are still scarce, but I’m sure it will grow in time.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?