Google's Rivals Unite on Ads: Yahoo, Microsoft and AOL to Sell Space on Each Other's Sites in Counterattack
Posted in: Miscellaneous at 15/09/2011 14:01
In their boldest attempt to battle the growing dominance of Google Inc. and save their embattled advertising businesses, Yahoo Inc., Microsoft Corp. and AOL Inc. plan to band together to sell ads on each other's sites, according to advertising executives pitched on the initiative.
The move comes as the three Internet rivals scramble to recover lost share in the online display-ad market as marketers shift more of their dollars to Google. It also is a bid to improve their rates for display advertising, which have been falling as rising Web traffic has inflated inventory.
Yahoo, AOL and Microsoft 'to challenge Google for display ads'
Yahoo, AOL and Microsoft are joining forces to try and loosen Google's grip on internet advertising, according to reports.
Executives from the three companies have privately told media buyers about the plan in the US, where Google has now outstripped Yahoo in display as well as search advertising.
Citing unnamed sources, tech blog AllThingsD said the trio are planning to sell each other's "class 2 display" advertising inventory - advertising space they have not managed to sell themselves and would normally hand over to media agencies to fill.
AOL, Yahoo and Microsoft Reportedly in Ad Deal
Yahoo, AOL and Microsoft, three major technology companies that have traditionally competed for digital advertising revenue, have created an unusual partnership in which they will sell ads for one another.
The move represents an effort to challenge Google, which dominates the search advertising market and has increased its efforts in display advertising.