Facts about the Yahoo-Google advertising agreement

On June 12, 2008, Yahoo! and Google announced an agreement that gives Yahoo! the ability to use Google's search and contextual advertising technology through its AdSense™ for Search and AdSense for Content advertising programs.

Under the agreement, Yahoo! has the option to display Google ads alongside its own natural search results in the U.S. and Canada. In addition, Yahoo! can serve contextually targeted ads on its U.S. and Canadian web properties as well as on its current publisher partner sites. Yahoo! will continue to operate its own search engine, web properties and advertising services.

In addition, Yahoo! and Google agreed to enable interoperability between their respective instant messaging services bringing easier and broader communication to users.

As a result of the agreement, Yahoo! will be able to complement its own advertising program with Google’s advertising technology. As a result, advertisers will be able to better reach consumers, and Yahoo! and its current publisher partners can generate more revenue. Yahoo! can use Google's advertising technology on as many or as few of its search results and content pages as it chooses.

This arrangement is not a merger, nor a joint venture. It is much simpler than that - it is a non-exclusive agreement to supply advertising. Yahoo! remains free to enter into similar agreements with other advertising providers, including Microsoft. In addition, Yahoo! will maintain relationships with its own advertising customers and will continue to rely exclusively on its own advertising program outside of the U.S. and Canada.

The agreement has a term of up to ten years: a 4-year initial term and two 3-year renewals at Yahoo!’s option.