Yahoo, AOL and Microsoft ‘to challenge Google for display ads’

Three tech giants have approached media buyers about plan to target rival’s $2.5bn share of US market, say reports Yahoo, AOL and Microsoft are joining forces to try and loosen Google’s grip on internet advertising, according to reports. Executives from the three companies have privately told media buyers about the plan in the US, where Google has now outstripped Yahoo in display as well as search advertising. Citing unnamed sources, tech blog AllThingsD said the trio are planning to sell each other’s “class 2 display” advertising inventory – advertising space they have not managed to sell themselves and would normally hand over to media agencies to fill. The potential tie-up comes days after reports that AOL and Yahoo, fallen giants of the first age of the internet, were discussing a merger in the wake of the firing of Yahoo’s chief executive, Carol Bartz. AOL’s chief executive, Tim Armstrong, has approached Yahoo’s advisers to gauge its interest in combining the companies, Bloomberg reported. The advertising hook-up, in the meantime, could help slow the fast growth of Google and Facebook in the lucrative online display advertising market. Google has long dominated search advertising – or online classified advertising – but overtook Yahoo in display advertising in May this year in the US, according to research firm IDC. The search giant’s first quarter revenues of $396m – 13.3% of the market – compared with Yahoo’s $330m. Facebook had 8.8% of the market. Google got into the display end of the market in 2009 after acquiring DoubleClick. Since then the business has grown rapidly and is now estimated to be worth $2.5bn a year. Yahoo said it has “longstanding relationships” with AOL and Microsoft and will continue to work and compete with them in years to come. AOL said it is fortunate to have longstanding relationships with a large number of premium publishers, including Yahoo and Microsoft. “We’re excited to continue to explore opportunities to expand our relationships,” said AOL spokeswoman Caroline Campbell in a statement, adding that the company will share more information “when it’s available”. •

Posted by on September 15, 2011. Filed under News, Politics, World News. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.