Yahoo! Inc., the biggest U.S. Web portal, said it will begin using Google Inc.’s AdSense and AdMob advertising services on its sites.
The company signed a global, non-exclusive agreement with Google for so-called contextual ads, according to a blog posting today. Contextual ads use content on the pages a user is browsing to show relevant messages.
Users of Yahoo’s sites won’t see any noticeable difference in ads, the company said. The agreement covers Yahoo’s own sites and certain co-branded Web properties.
“By adding Google to our list of world-class contextual ads partners, we’ll be able to expand our network, which means we can serve users with ads that are even more meaningful,” Sunnyvale, California-based Yahoo said on the blog.
Google , which provides some Internet advertising services to Web-portal Yahoo! Inc., is interested in expanding the relationship, Google Senior Vice President Nikesh Arora said today at Deutsche Bank AG media and telecommunications conference in Palm Beach, Florida.
When it comes to internet companies to actually buy right now, we find ourselves liking very few. We do know that among the old line internet companies we prefer Yahoo (YHOO) and their CEO over other names such as AOL. Looking at the stable of brands, execution and the audience all point to a premier brand with Yahoo and the fact that they are willing to bide their time by having Google sell their ads until they can overhaul their own system shows shrewd business sense. They are maximizing profits today while also looking to the future to maximize profits as well. Turning around this behemoth has not been easy, but the speed with which the transformation has taken place has been stunning - especially when one considers how many tried before and failed. The company is a play on advertising revenue as well as a site creator via add-ons to its portal. Investors like the story here as the shares hit another 52-week high yesterday.
The fact that Yahoo is willing to bide their time by having Google sell their ads until they can overhaul their own system shows shrewd business sense. Marissa Mayer will take Yahoo to $100.
An Alibaba IPO in 2013 is now certain. A new search agreement with Microsoft or other is certain. A partnership with Google has been completed. More partnerships are certain. Do you buy Yahoo now at $20.50 or wait for the Asian assets to be monetized and pay $30?