Search advertising has been typically in the form of only text advertisements and links, contrasting to that of banner and box advertising which typically show images or video. The step taken by Yahoo also comes at a time where it has been proven that the recession has pushed advertisers towards investing more in search advertising rather than banner and box advertising. This is attributed to that search advertising gives more direct and measurable results.
Recently, Yahoo's strength has been that of banner and box advertising, so this move on their side makes them enter the fight to gain back market share from Google for search advertising. Yahoo's market share for search advertising has fallen from 13.8 percent in 2004 to 10.5 percent in 2009, while Google has doubled its market share to reach 67.7 percent in 2009.
The new offering had already been made available to larger advertisers, one of them being Pedigree, which has seen the benefit of the new form of search advertising.
“Video is always more powerful than just words on the page.It’s definitely compelling to us to have options like this, where, when you type in ‘Pedigree,’ you get more than just the words, you get the video itself.” - John Anton, the marketing director at Pedigree
The new offering would present the most value to those who are big enough to invest in their advertising and brand.
Yahoo is currently offering the new service for a monthly service fee which contrasts with Google's current model for generating revenues out of search advertising.
Yahoo's offering is currently unmatched by Google or Microsoft. However, will long will it be before Google follows the lead and capitalizes on its larger advertiser base to ensure it protects its market share of search advertising.
Is Yahoo really up for a fight or just creating a better place to offer itself again to Microsoft?
Hey Tamer,
ReplyDeletevery interesting article, in my opinion it will give an edge to Yahoo! for a short time, but Google will catch up fast and protect their market share, their "spider" is better anyway...
One thing I wanted to ask you is....what is the business model that Yahoo! will use, CPM or CPC?? with words it makes sense for me that CPC is the way to go, but with Video I am not too sure... I guess an attractive video would make it interesting to click...however would you click on Pedigree's website? probably I will just remember the brand when I go to the supermarket... so maybe CPM is the way to go...what do you think?
Cheers
Thanks Alberto for the question! As of now, Yahoo has announced that it will be based on a monthly subscription fee, so neither CPC nor CPM!
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