It seems that competing against search giant Google was too daunting a task for Aol, Yahoo! and Microsoft to tackle on their own. Even combined, they account for less than 30% of the search engine market share in the US (Google dominates with 65%), but a new Ad deal will see these old competitors band together.
The three companies plan to begin selling ad space on one another’s search results pages. Yahoo! Search is already powered by Bing, but this is a significant step further in their relationship. Aol, on the other hand, is doing this to avoid becoming irrelevant to advertisers.
Microsoft, Yahoo and AOL have agreed to feature each other’s graphic ads that the companies previously have handed over to ad networks. They are hoping help to get the extra ad money that is currently being spent on these networks who own advertising space across the web. Representatives from the three companies pitched the idea to a collection of leading web publishers and ad buyers at a presentation in Manhattan. AOL, Yahoo and Microsoft are even hoping to convince more big Web properties to join the deal and share some of their ad inventory as well.
The plan is clearly a strategic move against Google, who has recently begun moving into the graphic ad arena as well. The plan is supposed to be in action by the end of this year. Only time will tell if this compulsory partnership will last.