Let Our Powers Combine: The Australian Yahoo/Google Partnership

Manesh Ram, one of Reload Media’s experienced Digital Marketing Consultants, takes you through the ins and outs of the recent Google/Yahoo partnership in Australia. If you find this post useful or insightful, please feel free to ‘tip’ Manesh with a share on your preferred social network. Thanks!

A historic partnership between Yahoo and Google has recently impacted the battle for search engine market share in Australia and New Zealand. This agreement has allowed Google to capture an even bigger piece of the pie than ever before. Let’s take a look into what this means for the Australian search industry.

The Stats

In 2012, as per StatCounter, Bing had 4.10% of the Australian search market while Yahoo!7 had 1.29% and Google had a whopping 93.84%.

In 2013, Google’s market share dropped to 92.81% while Bing and Yahoo increased to 4.69% and 1.47% respectively.

It was surprising to see that Google lost 1.10% of their market share this year while Bing and Yahoo increased their individual portions by 14.39% and 13.95% respectively. You might say this is only a 1% drop for Google but, considering a population of approximately 23 million in Australia, we are looking at an approximate drop of 200,000 Google users.

The Partnership

So should Google be concerned about this 1% drop? Not anymore. Why? Google’s recent partnership with Yahoo increases their market share/market reach to 94.28% in Australia. Wow!

How Did This Unlikely Partnership Come About?

A few years ago, Yahoo announced a global partnership with Microsoft’s ‘Bing’ search engine. The two underdogs joined forces in order to have fighting chance against Google’s ever increasing market dominance. While the ‘Yahoo Bing’ network has been somewhat successful in United States and Europe, things are a little more complicated here in Australia.

As Channel 7 is in partnership with Yahoo in Australia (Yahoo7) and Microsoft has a similar agreement with Channel 9 (NineMSN), the Yahoo/Bing partnership down under has been a bit shaky from the get go.

However, the final straw came when Microsoft decided to launch their superior search advertising platform, Bing Ads, independent of Yahoo in Australia. To give you a bit of insight, search marketers around the world use Bing Ads to access Yahoo’s search inventory. With Yahoo’s ‘Panama’ advertising platform out of commission globally (except for in Australia), Yahoo had no choice but to hand their search inventory over to Google for use on their comprehensive ‘search partners’ network. This was arranged via undisclosed revenue sharing agreement between the two internet giants.

What Does this Mean For Advertisers?

As mentioned, Yahoo!7 and Yahoo! New Zealand’s search inventory has joined the Google Search Partner Network. If you are running ads through Google AdWords and opt in for the Google Search Partner Network, your ads will now also appear in the Yahoo search results. On top of this, you can also choose Yahoo as a placement in the Google Display Network in order to serve ads on other Yahoo properties like Yahoo Sports.

What You Need to Know…

If you are a Yahoo advertiser, the key things you need to know are as follows:

  • Yahoo Panama, which is Yahoo’s current advertising platform, will stop serving ads on 29th November 2013
  • Yahoo Account Management services ceased on 11th October 2013
  • Any unused funds will be refunded back to the credit card attached to the account
  • There will be a $100 account closing fee (for prepaid accounts)
  • All refunds will be processed in December 2013

This new partnership between Yahoo and Google happened fairly quickly and the transition is happening quite smoothly. Unfortunately, at this stage there is one big issue; advertisers won’t be able to differentiate Yahoo’s data from the rest of the Google Search Partner Network data. Hopefully Google will provide a solution for this in the near future.

#Data Sourced from: StatCounter

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