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BizReport : Internet : April 10, 2008

Yahoo to test Google AdSense

Yahoo has frustrated Microsoft today by announcing a limited trial of Google’s AdSense for Search. Google ads will appear alongside Yahoo search results, albeit only for U.S. Internet users.

by Helen Leggatt

The trial will last just two weeks and will be limited to no more than 3% of Yahoo search queries.

In Yahoo’s press release announcing the trial, the company was keen to reiterate that “the testing does not necessarily mean that Yahoo will join the AdSense for Search program or that any further commercial relationship with Google will result.”

The Google AdSense trial appears to be Yahoo’s way of indicating to Microsoft, who are threatening a hostile takeover, that they have other options to consider.

Not surprisingly, Microsoft weren’t happy with the Google AdSense news and issued a comeback in the form a statement attributed to Brad Smith, Microsoft’s General Counsel saying:

“Any definitive agreement between Yahoo! and Google would consolidate over 90% of the search advertising market in Google's hands. This would make the market far less competitive, in sharp contrast to our own proposal to acquire Yahoo! We will assess closely all of our options. Our proposal remains the only alternative put forward that offers Yahoo! shareholders full and fair value for their shares, gives every shareholder a vote on the future of the company, and enhances choice for content creators, advertisers, and consumers.”

Throughout today, more Yahoo tie-up reports have been published, the most recent concerning a possible AOL/Yahoo alliance.

Tags: Google AdSense, Microsoft, search advertising, Yahoo

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