The Microsoft/Yahoo! Deal – Answers For Search Engine Marketers

So it is official, our once beloved Yahoo! has cried uncle and submitted to the looming M&A noogie we have faithfully followed for the past few months.  It is truly a day of reflection for those of us who have been around long enough to remember setting GoToast to ‘Jam’ competitors through Bid Rules created specifically for Overture.  Ah, those were the days – when budget size meant more than quality.  We will miss you a lot and I will cherish my piles of purple swag and keep it in my garage to visit at times when I grow weary of my blossoming Google relationship.

So what does this mean to advertisers with insatiable appetites for search clicks? Well, here are the questions I can answer now:

1. Who is zoomin’ who?

Microsoft Bing will replace the Yahoo! Search technology for both PPC and Organic (Natural) Search results. Yahoo! will now be the sales force across both properties.

2. What advertising platform will we be using?

The AdCenter platform will become the core platform for paid search campaign management. This should all be complete within the next 18 months (pending regulatory approval of course). So expect minimal changes to the Yahoo! Advertising platform, while we can be sure MSN will be adding in significant enhancements.

3. Is this also the demise of Paid Inclusion (SSP)?

Unfortunately, there is no information on this currently.  But we do know that no changes will occur until Q2 2010 so you can count on it being around at least through the Q4 shopping season.  My take is that this is a huge revenue opportunity for Bing/Yahoo! and they will likely find a place for it. We will just have to see.

4. When will this all happen?

The plan is for regulatory approval in early 2010 with no changes until this occurs.  Following approval, Yahoo! will begin to display Bing results through organic search within 3 – 6 months, while Paid Search is expected within 12 (United States).  The complete Global roll-out may take up to 24 months.

How this impacts the advertising landscape remains to be seen, but despite the world view that less competition equals less innovation – I do not expect Google to rest on its heels and let things fall where they may, that is just not how they work.

For more information on this deal:

* It’s Finally Official, Microsoft & Yahoo Make A Deal, Yahoo Gives Up On Search
* MicroHoo Seals the Deal Everyone Expected