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Yahoo! and Microsoft Alliance to Benefit Pay Per Click Optimization

On July 29, Microsoft and Yahoo! announced a long-rumored agreement to consolidate their search engine services. Online advertising experts generally applauded the decision, which creates both consolidation and competition in the industry. One industry analyst told the Wall Street Journal that he felt the agreement would help provide some much-needed supply for high-demand pay per click advertisers. Not only do company officials intend to take on Googles most profitable service, they hope to rebuild connections with former search users by emphasizing higher quality results.

Under the agreement, Microsofts Bing platform will handle both organic and paid search results on all of Yahoo!s online properties for the next ten years. Both companies will maintain their own content properties, with officials from Microsoft and Yahoo! noting that they will remain "vigorously competitive" when developing outlets for display advertising. Pay per click optimization specialists now find themselves learning more about the still-new Bing platform, while developing strategies to help clients manage the right inventory across Google, Bing, and Yahoo! search results.

Pay Per Click Management Tools Expected to Merge

Over time, Yahoo! and Microsoft leaders expect the partnership to reduce redundancies between the services, especially the back end tools used by advertising managers. Even if MSNs AdCenter and Yahoos Search Marketing control panels eventually merge into one cohesive dashboard, pay per click management teams wont likely see a reduction in their daily workload. On the contrary, experts predict that stronger competition between the partners and Google will force more PPC management teams to weigh the quality of results across the two largest paid search providers. With Microsoft and Yahoo! reaching approximately one-third of search engine users daily, ad buyers see the partnership attaining the kind of reach necessary to gain enough critical mass to justify larger client budgets.

According to estimates provided to the media by representatives from both companies, it could take as long as two years for the partnership to achieve full implementation. Until then, corporate ad buyers can continue to rely on experienced pay per click management teams to weather any changes that emerge as the partners merge their technology platforms. Veteran ad buyers who remember the evolution of GoTo and Overture into Yahoo! Search Marketing should understand the benefits of letting third-party PPC management specialists focus on the ongoing training and experimentation required to master a new set of ad placement tools.

Alliance Intended to Enhance Pay Per Click Optimization

Pay per click optimization specialists are most curious to see if any distinctions emerge between audiences of the two major paid search platforms. As subtle differences in conversion rates and user click-through habits develop, skilled PPC management teams can help clients achieve better value for their advertising budgets. For instance, if the Bing platform delivers half of the overall audience of Google, a less expensive ad on Bing can actually deliver a higher return on investment for advertisers with an effective conversion program in place. Shareholders of Microsoft and Yahoo! hope that the companies new partnership can provide the kind of added value for advertisers that can cause revenues--and share values--to rise.



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