Internet giant Yahoo! announced an advertising alliance with long-time rival Google on Wednesday. Thanks to this, Google's advertisements will now appear on its new partner's web properties around the Internet.
With a great emphasis on contextual advertising, Yahoo! welcomed Google's two advertisements networks, Adsense and AdMob, onto its own properties, and certain co-branded sites. This move will help Yahoo! use Google's powerful ad network to make more money. However, the deal is no-exclusive. It is common knowledge that Google already distributes similar ads to millions of other websites, and the service has helped make the company one of the most prosperous companies in the world.
Yahoo! illustrates the effect of the new alliance: "Say you've been shopping for boots. If you see an ad for boots, that's instantly going to pique your attention more than an ad for, say, a car battery. That's better for users. This is why contextual advertising is such a powerful tool."
Yahoo! said its users would notice almost no difference in terms of their user experience, since the deal will allow for greater flexibility.
The announcement is rather ironic, since it was Google that dethroned Yahoo! in the Search Engine wars several years ago. The move is one of many turn-around initiatives by CEO Marissa Mayer, who was once a high-level Google executive before she took over the helm at Yahoo!. So her relationships with her old company were key in making sure that this deal went through smoothly. Until now, her efforts have all been focused on trying to reinvent Yahoo! for the modern Internet age. And so far she has been very successful.
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