Well the news is out. Apparently the much discussed search advertising deal between Yahoo! and Microsoft has been given the go ahead by both the U.S. Department of Justice and the European Union. Many are heralding that decision as the end of the Yahoo! search market share, which is sad because that’s kind of what Yahoo! has become known for over the years. Sure Yahoo! has their Shopping, Mail and News categories but they’re most thought of as a search engine.
So what does this deal mean for Yahoo! Essentially their free search capabilities will be transferred over to Bing while a paid search platform will become known as adCenter. The justification for this was that the deal would increase the level of competition amongst advertisers. Well this is good news for the companies, but not so much for search engine advertisers since more competition for ad space will ultimately drive those prices up.
So what’s an advertiser to do? The most logical step is to disperse advertising resources across fewer high cost methods and look for effective low cost methods to invest in. One of these is social media, which is possibly the cheapest way to get access to a large number of people. Some SEO gurus are already predicting that 2010 will be the year of social networks, with more and more advertisers moving away from search campaigns. After all, there aren’t that many effective search engines left.
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