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May 17, 2008 1:07:46 AM CDT



Yahoo Merger Could Level Online Ad Market  

Posted Apr 11, 08 3:57 PM CDT in Business Technology    Most Covered

(newser) – Winds of a Yahoo-Microsoft merger have sparked a “nuclear war” in the online-advertising world—and the Google-dominated market could soon see major changes, the Wall Street Journal reports. “Nothing short of a new world order in this space is up for grabs,” says an expert. As Yahoo and Microsoft mull joining forces with each other (or perhaps other partners), consolidation could create healthy competition.

“Three major players driving to innovate” would diversify the market, says an exec. On the other hand, a possible Google-Yahoo team-up would bring even more power to a company that already controls much of the search-ad market—perhaps improving efficiency but limiting options. If you can’t move money to a Google competitor, “the only option is to retreat from the search market, lower your spend, or grin and bear it,” says an advertiser.

Source Wall Street Journal

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Yahoo Merger Could Level Online Ad Market
The logo of Google, seen on the front door of the new Google Engineering center in Zurich, Switzerland, in this March 6, 2008 file photo.   (AP Photo/Keystone, Walter Bier, file)
Yahoo Merger Could Level Online Ad Market
This combination of two file photos shows Microsoft CEO Steve Ballmer, left, and Yahoo CEO Jerry Yang.   (AP Photo)
Yahoo Merger Could Level Online Ad Market
A Times Square news ticker flashes a headline about Microsoft above a billboard for Yahoo! in New York in this Friday, May 4, 2007 file photo.   (AP Photo/Mark Lennihan, file)
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