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BizReport : Search Marketing : July 17, 2008

Google/Yahoo deal could come at cost to marketers

Nowadays it feels like just about everything is rising in price – oil, food, power. Now it looks like online marketers will be hit where it hurts with reports that the Google/Yahoo sponsored search deal will increase Yahoo keyword prices.

by Helen Leggatt

searchignite%20logo.gifSearchIgnite president, Roger Barnette, said that a rise in overall search advertising costs would be experienced by most marketers in the wake of a Google/Yahoo sponsored search partnership, reports Mediaweek.

“The deal is clearly financially beneficial for both Yahoo and Google; however, advertisers need to be aware of the potentially significant impact to their search marketing efforts,” said Barnette.

Barnette referenced a recently released study by SearchIgnite into the pricing impact of the proposed Google/Yahoo sponsored search deal.

The study (.pdf), “Potential Impact of Google-Yahoo Partnership & Cost to Marketers”, concluded that Yahoo keyword prices may rise by around 22%. This assumes a profit maximization strategy is implemented.

Marketers will need to “adjust their search strategies accordingly”, advised Barnette.

Tags: advertising costs, keywords, search marketing

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