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Monday, June 23, 2008
After talking to Yahoo! earlier this week, I have more information on the specifics of the Google/Yahoo! deal. As you’ve likely heard by now, Yahoo! said it would use Google to provide PPC results for long tail (less popular) keyword terms. Yesterday, I learned tail terms would be calculated based on keyword volume. So, for example, Yahoo! will decide all terms with fewer than 100 searches per month will be backfilled by Google. With this information, a couple of interesting comments/questions spring to my mind…
(1) If Google is better at monetizing tail terms, isn’t success inevitable? And with success (and a better bottom line), isn’t there the possibility of Yahoo! find a way to tweak the definition of tail terms to suit their financial objectives? Eventually, we may see Google results in a very broad context of tail terms (similar to what has happened with PPC match typing).
(2) We’ve also seen the prices of tail terms increase in Google. I hate to say it people, but our days of cheaper Y!SM terms may be over. Over the last while, the prices of tail terms have crept up in Google and, as a result the same may happen in Yahoo! Besides better technology, there’s a good reason Google has been able to better monetize tail terms.
Note: for the next 3.5 months, it will be business as usual at Yahoo! (until the deal gets regulatory approval).
Posted by
Mona Elesseily
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