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The Ad Advantage
by Portfolio Staff
May 16 2008
May 16 2008
Can Yahoo juice up ad revenue before it's too late?
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Summary:
The Company provides targeted advertising and global internet search solutions as well as intranet solutions via an enterprise search appliance. View More
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Summary:
The Company is a global Intenet brand and trafficked destinations worldwide. It is focused on powering its communities of … View More
Last Trade:Change:
Summary:
The Company develops, manufactures, licenses, and supports a range of software products for many different types of computing devices. View More
One advertising deal helped drive away 
Microsoft. Can Yahoo do the trick enough times to stave off Carl Icahn?
Yahoo has again become active on the advertising front, striking an alliance today with ad-agency giant WPP. And Peter Lauria and Holly Sanders of the New York Post report that Yahoo is near a deal withGoogle on a search-ad alliance.
In the WPP deal, the company's ad agencies, working through its 24/7 Real Media unit, will develop a trading platform that connects to Yahoo's online ad exchange.
Stephanie Clifford of the New York Times explains: "The thousands of Web publishers that use Yahoo's advertising auction service to sell space on their sites will get more direct access to WPP's clients. Those clients, in turn, will be able to funnel their messages to website visitors who might be particularly receptive, using technology" from 24/7 Real Media.
"More and more, we see the need for agencies and media and technology companies to work together to create a new level of value," said Mark Read, WPP's director of strategy and chief executive of WPP Digital.
The deal comes just a week after WPP's chief executive, Martin Sorrell, was bemoaning the collapse of the talks between Microsoft and Yahoo on CNBC, saying that advertisers need a competitive alternative to Google.
Yahoo plans to announce a more permanent alliance with Google than its brief test in the next week, the Post says.
The alliance will be structured as an "open platform," allowing anyone to bid for the right to place ads on search results.
That approach, as Karen Donovan explained last month at Portfolio.com, is the only chance the alliance has of passing regulatory muster, given that a Yahoo-Google combination represents 90 percent of the search market.
While the approach may not exclude any competitors, Google's superior technology means that it would likely win a majority of the bids.
Microsoft. Can Yahoo do the trick enough times to stave off Carl Icahn? Yahoo has again become active on the advertising front, striking an alliance today with ad-agency giant WPP. And Peter Lauria and Holly Sanders of the New York Post report that Yahoo is near a deal with
Google on a search-ad alliance. In the WPP deal, the company's ad agencies, working through its 24/7 Real Media unit, will develop a trading platform that connects to Yahoo's online ad exchange.
Stephanie Clifford of the New York Times explains: "The thousands of Web publishers that use Yahoo's advertising auction service to sell space on their sites will get more direct access to WPP's clients. Those clients, in turn, will be able to funnel their messages to website visitors who might be particularly receptive, using technology" from 24/7 Real Media.
"More and more, we see the need for agencies and media and technology companies to work together to create a new level of value," said Mark Read, WPP's director of strategy and chief executive of WPP Digital.
The deal comes just a week after WPP's chief executive, Martin Sorrell, was bemoaning the collapse of the talks between Microsoft and Yahoo on CNBC, saying that advertisers need a competitive alternative to Google.
Yahoo plans to announce a more permanent alliance with Google than its brief test in the next week, the Post says.
The alliance will be structured as an "open platform," allowing anyone to bid for the right to place ads on search results.
That approach, as Karen Donovan explained last month at Portfolio.com, is the only chance the alliance has of passing regulatory muster, given that a Yahoo-Google combination represents 90 percent of the search market.
While the approach may not exclude any competitors, Google's superior technology means that it would likely win a majority of the bids.
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