Microsoft, Yahoo!, and America Online have combined their advertising might to battle the companies with the most advertising revenue – Google and Facebook. The idea behind the companies’ alliance will be through their advertising of space on their individual websites; instead of trying to sell their own premium ad space, they will allow their new allies to do it for them.
“The agreements will allow ad networks operated by Yahoo!, Microsoft and AOL to offer each other’s premium nonreserved online display inventory to their respective advertising customers,” said Microsoft in a prepared statement
This would make it much easier for potential customers to get ad space on a desirable website. Now, if Yahoo has no more space for a particular advertiser, the company can redirect the ad to Microsoft or AOL. From a business standpoint, it is a better solution than simply forfeiting those profits altogether.
The coalition came as a response to the past few years, in which Google and Facebook have essentially taken over the majority of advertising. Google has become the household name for search, and users spend hours on Facebook, subjecting themselves to loads of ads. Other sites just can’t compete.
The value of ads on Google, the world’s most dominant search engine; and on Facebook, the world’s most popular online hangout continue to rise. AOL, Microsoft and Yahoo have teamed up to face the rising competition from Google and Facebook and the three companies are hoping to drive up the price advertisers are paying for page views.
