Could the Yahoo-Google deal force online ad rates to go up?
If Google is serving search ads both on its own site and on Yahoo!'s it effectively has the largest reach of any search advertising company. It could in theory command much higher rates, which would obviously be good for them in the short term but bad for advertisers.
Who thinks this will happen?
Answers
265 points
ChuckF answered 5 months ago …
I guess it could but Google hasn't been out there trying to gouge advertisers. People use Google because they're EXTREMELY effective at monetizing their ads. Meaning, Google really focuses on saving advertisers money and only serving ads that are actually moving product for the advertiser. I doubt they'll start trying to squeeze partners now.
But in the end, we'll have to wait to see what the DOJ says.
951 points
Grudun answered 5 months ago …
It could but only slightly. From what I have seen Google uses an auction style system to sell its ads. Meaning if you want more popular keywords you will pay more. Since a lot of advertisers who were buying on Yahoo! will have to start buying on Google it will increase the cost of some of the very popular keyword combination but it will not be systemic. This is assuming the DOJ says yes. A big IF.
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