May 8, 2013 113 reads by Navneet Kaushal

Yahoo and Microsoft have extended their revenue-per-search deal for one more year. Reuters spotted the extension of the agreement in the recent quarterly filing of Yahoo.

Yahoo's CEO Marissa Mayer was however not too happy with the deal and had given a hint that the search would expire on March 31, 2013. At the Goldman Sachs Technology and Internet Conference held in February, Mayer said, "Our biggest business problem right now is [page] impressions. Basically can we grow impressions, can we get growth happening here?" Mayer also said that there's a need of better monetization on the Yahoo properties. 

She was quoted saying, "We need to see monetization working better because we know that it can and we've seen other competitors in the space illustrate how well it can work".

Despite Mayer's comments, Yahoo and Microsoft have decided to stick with the partnership and continue for one more year. As per Tuesday's 10Q filing with the Securities and Exchange Commission, the contract began on April 1. It will guarantee Yahoo revenue for 18 months that will be derived per search for ads appearing on the network of Yahoo sites.

It is clear that Microsoft wants the market share that Yahoo provides and doesn't want to lose the deal to another search provides, especially Google.

At present, Google owns more than 67 percent of the search market share, Bing captures under 17 percent, and Yahoo acquires less than 12 percent.

Microsoft-Yahoo Search Ad Deal Extended for Another Year!, 4.0 out of 5 based on 4 ratings
Navneet Kaushal

Navneet Kaushal

Navneet Kaushal is the founder and CEO of PageTraffic, an SEO Agency in India with offices in Chicago, Mumbai and London. A leading search strategist, Navneet helps clients maintain an edge in search engines and the online media. Navneet's expertise has established PageTraffic as one of the most awarded and successful search marketing agencies.
Navneet Kaushal
Navneet Kaushal
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