Yahoo recently announced that it will begin displaying ads from Google’s AdMob and AdSense on Yahoo co-branded sites as well as Yahoo-specific sites.
Google has outplayed Yahoo in essentially every single game thus far, so it shouldn’t surprise anyone that Yahoo has decided to partner up with its rival. The deal between Yahoo and Google will allow Google to have an even bigger presence on the web, while also allowing Yahoo to have more ads to display. Many Yahoo-specific sites such as News, Answers, Sports, and Mail have strong followings, and the deal seems to benefit both search engines—although, one can argue that Google is the on the better end of the bargain.
Yahoo says that the deal will help it to become more “focused on doing everything [they] can to make user experience inspiring and engaging… [and] one of the way [they] can do this is by providing relevant and well-targeted content—whether that be editorial or advertising content.” Moreover, Yahoo claims that there won’t be a “noticeable difference in how or where ads appear” on the sites.
It is worth noting that Yahoo’s current CEO, Marissa Mayer, was a former Google engineer, designer, product manager, and executive. Instead of “abandoning Google”, Mayer may have helped to build a bridge between the two competitors. We’ll see where this partnership leads Google and Yahoo, but for the time being Google has the stronger hand.