Former search heavyweight Yahoo has entered into an agreement with current champion Google. Yahoo will gain access to Google’s Web and Image search results services along with search advertisements under the deal.
The Google Yahoo deal is not a bad setup for either party. Google will provide Yahoo with search advertisements through AdSense for Search (AFS) that can be displayed on Yahoo! Properties and affiliate sites.
Yahoo will get a percentage from the gross revenues these ads bring in on their sites, though the payout is not quite so straightforward. The percentage paid will depend on where the AFS ads are displayed. For example, the percentage will vary depending on whether the ad shows up on a U.S. desktop site, a non-U.S. desktop site or on smartphone and tablet browsers.
Conversely, Yahoo will pay Google for its Web and Image search services. Yahoo will have to pay fees to Google whenever they use Google’s Web Search services for image searches or algorithmic search results. The specifics for these fees were not disclosed.
The deal leaves Yahoo! free to pursue other similar services from different parties, stating:
“The Services Agreement is non-exclusive and expressly permits Yahoo to use any other search advertising services, including its own service, the services of Microsoft Corporation or other third parties.”
Yahoo is also not obligated to use Google’s services. For example, Yahoo does not have to meet a minimum number of search queries. It is free to use or not to use Google’s services as much or as little as it wants for the duration of the agreement.
Though the deal was just recently closed, it was effective starting Oct. 1 and will continue until Dec. 31, 2018. That is, unless either party has reason to terminate.
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