How the Google Deal with Yahoo Affects Local Marketing

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Image Credit: Search Engine Land 

Just when you think Google can’t become more powerful, along comes its recently announced relationship with Yahoo to remind us of Google’s influence. As you have probably heard by now, Google and Yahoo struck a nonexclusive deal in which Google will provide search ads for Yahoo’s search results, and Yahoo can run organic search results through Google, not just through Bing. The relationship between Google and Yahoo underscores why enterprises should view a handful of influential publishers such as Google as the foundation to amplify their own local reach.

One of the most significant aspects of the Google/Yahoo agreement is that Google is providing search ads for Yahoo search results. Yahoo used to display Bing ads exclusively with its search results, owing to an agreement between Yahoo and Microsoft. But earlier in 2015, Yahoo negotiated a new Microsoft relationship that permitted Yahoo to have more say in its choice of ad providers. The Google/Yahoo deal shows how aggressive Google has been to capitalize on Yahoo’s desire to monetize search more effectively. The Google/Yahoo partnership gets AdWords back into Yahoo results so that Yahoo can better monetize the diminishing search traffic Yahoo is receiving. Consequently, local marketers will likely soon be able to target consumers using Google’s AdWords platform — thus enriching the tools at their disposal.

Google has exerted more influence with organic search results as well. Bing used to be the exclusive provider of organic search results for Yahoo, but the renegotiated Microsoft/Yahoo relationship also opened up the door for other platforms to provide organic results — and Google waltzed right in and became one of those platforms. Now, Yahoo has more choice to route organic search queries to both Bing and Google. It is not outside the realm of possibility that Yahoo will attempt to mash up Bing and Google organic results, but such a scenario feels unlikely. Expect Yahoo to test performance when serving up the two different search results and using the data set that provides a better search experience and more revenue. The data set could very well vary based on factors such as the type of query or the device being used to do a search.

The Yahoo relationship certainly casts a spotlight on Google’s influence, but obviously Google isn’t the only major publisher in the industry. Google may have muscled in on Bing’s turf with Yahoo, but on the other hand, Bing is the default search engine for Apple’s Siri voice-activated assistant, which gives Bing an advantage with voice search. And of the major publishers — Apple, Bing, Facebook, and Google — are main players for amplifying an enterprise’s location data. I advise clients to:

  • Take another look at your local marketing strategies — in particular, your location data strategies — and assess the strength of your relationships with the major publishers as well as aggregators that supply data to them. How have the importance of sites providing citations shifted in the local ecosystem? Should your strategy shift with them? The same players redefining the search landscape are also changing local marketing, especially by making it more essential that businesses partner with them to amplify their location data. The major publishers should form the foundation of your local marketing partnerships, complemented by relationships with smaller publishers in key verticals.
  • Assess the breadth of your local marketing beyond search. The Google/Yahoo news is all about search, but the influence of the major publishers goes beyond search to touch all aspects of local marketing — as noted, by making location data more important.

The big players are shaping the future of local marketing through the relationships they form and the innovations they develop. Contact us to explore the impact of the Google/Yahoo relationship has on you.

Adam Dorfman

Author Adam Dorfman

Adam Dorfman is an interactive marketing professional with over 15 years experience in all facets of online marketing including local & organic search, pay per click, paid inclusion, email, RSS/XML driven advertising, ad networks, social networking, blogging, website analytics, usability and offline integration as well as web development, hosting, networking and project management. Read more.

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