At the end of what seems to have been a successful event, Cedric Chambaz from Microsoft and West Burghhart from Yahoo! Spoke about the Yahoo! and Microsoft Search Alliance at ad:tech UK. The topic of many questions asked at our stand.
Why an alliance?
Chambaz says that during the recession more and more advertisers were investing in digital, especially search as it is very scalable and it is very easy to measure the return on investment. Where advertisers may have experimented more before the credit crunch, during and after the recession, people simply wanted high quality, converting traffic.
Figures from Nielsen Net Ratings show that Yahoo! and Bing audiences together are 33% more likely to convert after clicking through than other engines. The question after this figure is always around share and why there isn’t more of it. Joining forces, then, seems a logical move.
The Benefits for Advertisers
· Convenience. There will be one platform across two networks where advertisers will manage campaigns in one place, adCenter, saving time and effort.
· There will be a search alternative in the market with a larger combined share, giving advertisers the opportunity to connect to a larger, highly converting audience from one place.
Where do Yahoo! and Microsoft cooperate?
Details and FAQ can be found on the Yahoo! and Microsoft Search Alliance website. During the conference the following points were emphasised:
· It is a 10 year commitment (no experiment).
· There are areas where both companies will work together and areas where they’ll still compete.
· Microsoft will be responsible for marketing to and support self-serve search advertisers who are not managed by an account team.
· Yahoo will look after all high volume search advertisers, SEM and SEO agencies, and resellers and their clients.
· Microsoft will manage the algorithmic search serving platform used by both companies, including web, image and video results. Microsoft will also be responsible for the search advertising platform that will be used by both companies (adCenter).
Where do Yahoo! and Microsoft compete?
· Web properties and products, email & instant messaging.
· Display advertising - Each company will maintain its own separate display advertising business and sales force.
When will advertisers notice anything of the alliance?
· In the US and Canada, Yahoo! organic results are now powered by Bing and the paid search transition is scheduled to begin mid-October.
· In the UK, France and Ireland both companies hope for a transition in 2011. Advertisers will be given notice and both companies will be there to ensure all works fine for advertisers before, during and after the transition.
For more on the Yahoo! and Microsoft Search Alliance: