Yahoo tries to preempt government investigations into Google/Yahoo advertising deal with manipulated advertising returns
Yahoo held a three day press conference in Washington last week to defend its joining in the Google adsense network. At risk here is creating a search advertising monopoly that grants Google 80 percent of the online advertising for search returns. Google is being evil and Yahoo is desperate for those Adsense revenues.
The least funny thing about Yahoo examples? How the world will be better under a Google adsense monopoly as Hilary Schneider, executive vice president of Yahoo U.S., claims the deal with Google is the same as Yahoo’s partnerships with other publishers. It provides information that hundreds of U.S. newspapers can sell ads on Yahoo properties already as resellers. Below we have just what newspaper publishers think of this deal.
Yahoo manipulates search results to make fake advertising returns.
The best comes as she used the example: search for “red roses in Birmingham Alabama” and you get no ads on Yahoo search results page. Google’s search results page has 11 advertisers. This is to prove that allowing Yahoo to join Adsense, Yahoo will be giving those Adwords advertisers a chance to reach Yahoo users as well and potentially get more customers.
Well we did that search and she was right. But we decided it was too strange and did a search on “red roses in Chicago” and there were 15 Yahoo network ads! We tried the dirty small steel town Gary, Indiana and there was an advertiser too! So Yahoo may have stripped the ads from the page to provide false information or there are no men cheating on their wives in Birmingham, Alabama and no more love left.
There is no doubt that advertising prices will raise on the Adwords network as Google controls 80 percent of the global search return advertising market. That is a real coup for them if they pull this off. Expect a big tick in Google stock if they pull this one off and expect fewer revenues to go to adsense advertisers.
World Association of Newspapers expressed concern that "with respect to paid search ads, the deal can be perceived as an agreement to fix prices."
Google usually charges between 20 and 35 percent more than Yahoo on average, the group said, citing a study that found that "prices on Yahoo will increase by an average of 22 percent under the deal."
Although Google and Yahoo said the deal would only be in effect in the United States and Canada, the World Association of Newspapers said it would hurt Yahoo’s effort to compete vigorously against Google and give Google a valuable window into Yahoo’s ad business.
"The proposed deal will fatally weaken Yahoo as a competitor (to Google)," said the newspaper group, in calling on European antitrust authorities to scrutinize it.
Even bigger is the question of those who depend on Yahoo advertising network? These sites, for the most part, have been banned by Google and cannot earn anymore without Yahoo. Google bans for life any site for any infraction of a subjective and changing tomb of rules, morals, and any reason whatsoever. Don’t be evil just does not stop them.
Don’t you wonder if Yahoo will find out how much they actually lose by not doing this themselves? Given the complete secrecy of what a click costs and what is paid on 80 percent of all revenues sure leaves a lot of money on the table to get evil over.