June 15
Yahoo + Google = Google
The news was in the air for several months already, now it's official: Yahoo Inc. announced Friday it had concluded an agreement with Google to subcontract part of its advertising business. Clearly, it will flow to consumers advertising Google Yahoo. In the kitchen, the chef regales Google already. In cash, the restaurant hopes exclamation point pocketing nearly 800 million in annual advertising revenue through this agreement.
What does or can serve this new market for the second domain name? Both much and little.
Many weight when you know the car has gained over the years and the consolidation that has promised. Only now, one of the prerequisites for the consolidation of a market is competitive, yet in this case, the dominance of Google may well turn into a monopoly.
Not much when you know that monetization parking is only a relatively small share of the pie "PPC" and that the agreement is limited to North American traffic.
But one thing seems certain: an agreement between Yahoo and Microsoft could have done far more good to the market as announced Friday. While the first two had joined forces, the most optimistic could have imagined that their union was able eventually to counterbalance the weight insolent Google's market advertising links. Or at least push the giant Mountain View to excel in terms of technology and salaries. Instead, this deal should strengthen a little more dominance of Google and drive the Microsoft Live.com.
"If you can not beat them, join them". A recognized and known adage in the business world. But many analysts think that Yahoo has opted for the worst strategic alternative that is finding this in partnership with Google. Indeed, far worse than to lose an ally of choice in the fight against their historic rivals, Yahoo held the latter the red carpet to its network of advertisers. "Google knows everything controls"
But back to the possible consequences on the secondary market for domain names.
First and the effects are visible globally, yet will he that the agreement affects a significant segment car. In other words, advertisements that appear on Google Cash! Provider partners like Yahoo Parked, Hitfarm or DomainSpa. Many advertisements. But let us not forget that the agreement does "that" traffic in North America first, and only 2 of the 3 major brands of car are working with Google on the other.
This latest announcement could have an adverse effect even before the terms of the contract are applied in the field (after 3 to 4 months, because the file must first pass through the hands of experts in competition). Indeed, many advertisers would abandon their campaigns and Yahoo already turning to / be limited to Google. Why advertise directly to the first so announced to the second offers the same result? Consequence: the competition between advertisers will drop at Yahoo, leading to falling prices per click, which will have a direct impact on pay parking providers partner Yahoo. Meanwhile, this same competition will increase only slightly at Google, which will therefore ultimately require a little more than its commercial law.
But it is not just about trade policy. There is much more fanciful hypotheses certainly, but far more insidious if they are proven true. Google's dominance on the market car park would mean bankruptcy progressive partner Yahoo. They will simply join the ranks of Google, you will say. Yes, if it agrees to open its doors. But at a time when the tightening of the noose of quality traffic from Google is already being felt, it is highly unlikely that Larry and Sergey welcome all the tribe of parking with open arms. Even less competition for Google in the car segment would necessarily mean a quasi-dictatorial policy, not only at the margins but the evolution of the car as a business model.
And the park service already working with Google, they should rub their hands, they at least? Nay! In truth, their troubles do may be just beginning. Sealed by exclusivity clauses and restrictions to increasingly drastic Google, many are seeking alternatives to "Google Dollars. What eg segment traffic adult which Google seems to gradually disengage? Seek Yahoo appeared to be the least bad, but now ... unless the governed - or even better, the advertisers - the adult market experts do not mix in the battle.
Which brings me to the conclusion of this note: this major change should be long-term generator of new opportunities. I refuse to believe that market fundamentals as liberal as that of online advertising accepted a monopoly. Ditto for the market in domain names. If the answer does not come from a balance of power between the "core power" of the market, it will come from advertising itself.
