11 comments

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  aaron wall

  5 months ago

  Google did not want Europe for one big reason: limited upside potential with a high likelihood of drawing regulator scrutiny.
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  Vinny Lingham

  5 months ago

  Perhaps so, but Yahoo isn't doing anything to centralize bidding for any of it's global markets - they are missing why Google's monetization yield is so much higher...
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  aaron wall

  5 months ago

  It is a major factor, but the lack of globalisation does not explain why a US click for "mortgage" is sold for $15 on Google and only $5 on Yahoo!
  
  I think there are 3 other big factors
  - Google's huge marketshare
  - Google's better relevancy (particularly on content)
  - Yahoo!'s nasty partner network which you can not opt out of! that dilutes their click quality (particularly in high value niches)
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  Vinny Lingham

  5 months ago

  Agreed - especially with point 3. The key strategic differentiator between Yahoo & Google is that Google allows advertisers to segment the userbase they want to target, Yahoo believes that by creating a mix of inventory, they will make more money - thereby cross-subsidizing (poor partners with good ones, for example). The mortgage example you posed is more in line with your partner/distribution point, than global markets - but the same principle applies. Advertisers are not willing to pay a premium for a blend of good and poor traffic. Yahoo also can't offer an alternative to good partners, because their international traffic yields are so poor - hence the cycle perpetuates...
  
  I hope I'm making sense :-)
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• 

  aaron wall

  5 months ago

  of course you are. I feel like we could probably have a chat and rail on Yahoo! for hours on end, but it is too easy :)
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  Vinny Lingham

  5 months ago

  s'true... :-)
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• 

  Shawn

  5 months ago

  Either way you look at it now, Yahoo is Google's puppet. How could you be number 1 on Alexa and be the first in the search engine game and not know what the hec you're doing?
  
  http://www.shawndrewry.com/?p=95
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  John

  5 months ago

  Yahoo! just don't get Search.. Good post Vinny!
  
  One thing I thought I read was the deal only applied to Yahoo! in the US and Canada?
  
  This will in affect mean that they still do not gain from the Global reach and once again prove that they don't get it.
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• 

  Violin

  4 months ago

  Centralization is the key to success for Google and i think both companies(Yahoo and MSN) should follow this. As i am agreed with all of repliers and I think that was the biggest mistake by Yahoo.
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• 

  Quinton

  3 months ago

  I' m interested in it too. That's why let me know about the general changes. I think the partnership of Google and Yahoo will be useful and favorable for everybody. Thanks for this information.
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• 

  Flug

  1 month ago

  Hi Vinny,
  I have just read your suggestions and it´s a pitty that Yahoos´ representatives didn´t follow them, viz. didn´t even discuss them on a higher management level. I don´t really care about Yahoos´ health or efficiency, but am annoyed about the disabillity of their management: For a company that is eligible to be a global player it is inexcusable to not consider the weak signals in their strategic process. It seems that they set up a sort of masterplan as an untouchable silver bullet. Well, unless strategies have to be reconsidered continously, Yahoo ought to detect the gap to their goals much earlier and react much faster. I am curious about the outcomes of Googles´ "consulting".
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