Google and Yahoo! entered into a four-year advertising agreement yesterday that will place Google AdWords on Yahoo! web properties in the United States and Canada. The agreement, which is renewable for two, three-year periods, gives Yahoo! the ability to display higher converting Google advertising in place of Yahoo! Search Marketing ads.
The terms of the agreement are non-exclusive, which allows Yahoo! to display advertising culled from any ad-network, including (if it wanted to), Microsoft’s AdCenter or its own Panama marketplace.
The agreement lets Yahoo! pick the search and pages on which Yahoo! might display Google advertising and even allows Yahoo! to mix and match ads pulled from AdWords and Panama. It does not extend into the realm of natural or organic search.
In a press release issued by Yahoo!, CEO Jerry Yang said, “We believe that the convergence of search and display is the next major development in the evolution of the rapidly changing online advertising industry. Our strategies are specifically designed to capitalize on this convergence — and this agreement helps us move them forward in a significant way. It also represents an important next step in our open strategy, building on the progress we have already made in advancing a more open marketplace.”





















