Google-Yahoo! Ad Pact Hurts the Little Guy
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When two bitter rivals start cozying up, you have to get suspicious. Heartwarming as it may be to see big tech companies working together, small businesses may be the big losers in a proposed partnership between Google(GOOG Quote) and Yahoo!(YHOO Quote)
Desperate to avoid a sale to Microsoft(MSFT Quote), Yahoo! has been grabbing any opportunity to increase revenue and shore up its free-falling stock price. In June, the company announced a deal that would allow Google to sell ads on Yahoo! sites. Together, Google and Yahoo! sell more than 80% of all U.S. search ads, the most profitable part of the online ad business.
The partnership is being promoted as a convenience to advertisers. In one transaction, businesses will be able to buy ads on everything from Google's search pages to Yahoo!'s email pages, allowing their message to be seen by many more people with no extra effort. ...
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