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Source: Agencies |
November 10, 2011, Thursday
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MICROSOFT, Yahoo and AOL are joining forces in an online advertising attack on Google and Facebook.
The alliance, announced on Tuesday, is designed to sell some of the less-prized ad space that Microsoft Corp, Yahoo Inc and AOL Inc have had trouble filling on their own.
Even as they share some resources, the three companies vowed to retain their independence and compete against each other with separate sales teams. For that reason, they said they don't expect United States antitrust regulators to object to the non-exclusive partnership before they begin selling ads together in January.
Ross Levinsohn, a Yahoo executive vice president, hailed the alliance as a "fundamental rethinking" of the Internet ad market.
Microsoft, Yahoo and AOL all need to change the direction of an online ad market that has been tilting in the direction of Google and Facebook.
Having already built a moneymaking machine in its dominant search engine, Google has become even more powerful in Internet marketing since it bought DoubleClick's ad service for US$3.2 billion in 2008. That deal provided Google with a springboard to leap from text ads that appear next to search results into the graphical messages known as display advertising.
Facebook attracts more advertising as it becomes established as the Internet's most popular hangout. The company accumulates valuable insights into people's interests as its 800 million users share their passions. That advantage has helped Facebook become the leader in US display advertising with a 16 percent share of the online ad market, according to research firm eMarketer Inc.
Yahoo, the former leader, has seen its share fall from 18 percent in 2008 to 13 percent this year. Google's share rose from 2 percent in 2008 to 9 percent. Microsoft stands at 5 percent and AOL is around 4 percent, according to eMarketer.
The alliance, announced on Tuesday, is designed to sell some of the less-prized ad space that Microsoft Corp, Yahoo Inc and AOL Inc have had trouble filling on their own.
Even as they share some resources, the three companies vowed to retain their independence and compete against each other with separate sales teams. For that reason, they said they don't expect United States antitrust regulators to object to the non-exclusive partnership before they begin selling ads together in January.
Ross Levinsohn, a Yahoo executive vice president, hailed the alliance as a "fundamental rethinking" of the Internet ad market.
Microsoft, Yahoo and AOL all need to change the direction of an online ad market that has been tilting in the direction of Google and Facebook.
Having already built a moneymaking machine in its dominant search engine, Google has become even more powerful in Internet marketing since it bought DoubleClick's ad service for US$3.2 billion in 2008. That deal provided Google with a springboard to leap from text ads that appear next to search results into the graphical messages known as display advertising.
Facebook attracts more advertising as it becomes established as the Internet's most popular hangout. The company accumulates valuable insights into people's interests as its 800 million users share their passions. That advantage has helped Facebook become the leader in US display advertising with a 16 percent share of the online ad market, according to research firm eMarketer Inc.
Yahoo, the former leader, has seen its share fall from 18 percent in 2008 to 13 percent this year. Google's share rose from 2 percent in 2008 to 9 percent. Microsoft stands at 5 percent and AOL is around 4 percent, according to eMarketer.
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