Yahoo Inc. and Google Inc. have signed a global non-exclusive contextual advertising deal that will generate impressive revenue growth in the future. Yahoo shares rose more than 1.5% as a result of the news.
How Will This Work
Google ads will start appearing on different Yahoo sites and some co-branded sites using Google Adsense for content and AdMob services.
Google retains part of the revenues generated from the ads displayed on partner sites. Exact ratio wasn't disclosed, however, website owners who display ads covered in the agreement will get up to 68% of the ad revenue. Well let's see what happens.
Who Will Benefit
Both Yahoo and Google will benefit from the deal.
Yahoo Inc. has seen an increase in search revenues from the last quarter as a result of improvements in the quality of ads. On the other hand, Yahoo Inc. has failed to deliver repeatedly, let's see if the deal will have any positive impact on Yahoo and help generate additional advertising dollars.
Google Inc. will also benefit by getting additional space to run its ads and increase advertising revenues.
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