New Countries for Yahoo-Microsoft Search Alliance
August 4, 2011
Yahoo’s partnership with Microsoft is in the driver’s seat, as Search Engine Journal explains in “Yahoo Unrolls Search Alliance to 6 New Countries.” The deal has Microsoft supporting Yahoo by managing the mechanics of the search engine and providing search advertisements. However, Yahoo is remitting transition costs and a percentage of ad revenue. Writer Rob D. Young notes:
“One of the most clear things is that the search alliance will become less costly once it’s complete. At that point, Yahoo will be able to drop its back-end support in countries where Microsoft hasn’t yet taken the reigns, and transition costs will no longer be deducted from the total company income. So it’s good news for Yahoo that the transition to Microsoft has completed in another six regions.”
Argentina, Chile, Colombia, New Zealand, Peru, and Venezuela are the new areas, while more in Europe and Asia are on their way. Yahoo search is being customized for each region. Full migration should be completed by the end of this year.
The company’s second quarter earnings report confirms that these transitions are crucial to the its bottom line. Bing has been in the news lately, but we think that Bing will persist for the foreseeable future. Microsoft cannot concede search advertising to the Google—at least not yet.
Cynthia Murrell, August 4, 2011
Sponsored by Pandia.com, publishers of The New Landscape of Enterprise Search
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