The display deal struck by Google and yahoo to show their ads side by side in Yahoo Search results. The buzz around industry publications is that advertising rates will increase as the two search marketing platforms compete side-by-side. Did you catch that – more competition must equal a higher price. If we let hype and hysteria cloud our judgment as marketers we end up on the wrong end of decisions.
The basic economics tell me that increased competition is good for the customer, not the seller. I think this is a way for Yahoo to really step up to the plate and show why they think their advertising gives users a better experience. I personally can’t wait till the FTC approves the deal and we can see how the two systems compete side by side in a way that has never happened before.
For now, don’t overreact, prepare. Now is the time to take stock of both campaigns and compare how they are performing. I am looking carefully at how Yahoo’s results have trended since they started generating buzz with their Microsoft fiasco. It will be interesting to see how this chapter in the search engine saga plays out.
