Report: Google-Yahoo! deal could increase PPC ad prices

Internet Marketing

16 July 2008

Paid ad search prices on Yahoo! could rise if the advertising deal between Google and Yahoo! is approved, it has been claimed.

Keyword ad prices could increase by an average of 22 per cent should the agreement get the green light from regulatory authorities, according to SearchIgnite.

The marketing technology company said, however, that the extent to which prices rise for those buying ads on Yahoo! may differ depending on each marketer's strategy regarding groups such as long tail, head and brand terms.

"Advertisers need to be aware of the potentially significant impact to their search marketing efforts," commented Roger Barnette, president of SearchIgnite.

"Most marketers will see their overall costs for search advertising across the Yahoo! network increase and will need to adjust their search strategies accordingly."

Microsoft vice president and general counsel Brad Smith recently told the senate judiciary committee subcommittee on antitrust and the house judiciary committee antitrust task force in the US that the Google-Yahoo! agreement would lead to fewer options and higher prices for advertisers.ADNFCR-1093-ID-18687940-ADNFCR

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