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Advertisers Not Backing Google/Yahoo Deal

Now we know that advertisers, and lots of them, don't like the idea of Google gaining more control over search advertising.

Today the Association of National Advertisers, which represents 400 companies and whose board counts executives from some of the biggest, announced that it has written to the Justice Department to object to the proposed Google-Yahoo search advertising partnership.

The proposal "will likely diminish competition, increase concentration of market power, limit choices currently available and potentially raise prices to advertisers for high quality, affordable search advertising," according to the announcement by ANA president and CEO Bob Liodice.

The Justice Department is currently reviewing the proposal, in which Google would provide some search advertising for Yahoo. About a dozen states are scrutinizing the deal as well.

Google is already the world's No. 1 Internet company and, according to its critics, it could gain a monopoly in Internet advertising if the deal with Yahoo is permitted. The ANA warned that " a Google-Yahoo partnership will control 90 percent of search advertising inventory."

But Google has responded that consumers and advertisers would benefit from the deal because its method of determining what ads to place beside a search query is the best in the industry.

Apparently, many of the large advertisers represented by the ANA don't see it quite that way.

By Peter Whoriskey  |  September 7, 2008; 7:33 PM ET  | Category:  Peter Whoriskey
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What short-term memories some people have? Remember it was just back in 2004 when Google ran Yahoo!'s search results. If Yahoo! didn't screw up Overture as a viable cost-per-click platform (a/k/a Project Panama) advertisers wouldn't be in this mess plus losing MSN as part of their CPC network didn't help any either. Overall it's a free market. I say good for Google and despite everything, good for Yahoo! shareholders as well.

Posted by: Paul Denhup | September 7, 2008 9:02 PM

Yahoo is now a dead company, the people that run it just have not realized it yet. That means that Yahoo's share goes to Google with this deal and a monopoly ensues.

Posted by: Nick | September 7, 2008 9:48 PM

I am an advertiser on Google, and the statements made by Google are a blatant lie. Google claims that ads start at 5 cents, and after you give them your money they immediately pump the price up to 30 cents. When they see that you are willing to pay 30 cents they pump it up again. As you pay each increase they add more to the price, until they reach a mandatory cost of $5. In a multitude of complaint emails from me to both Google and Microsoft, they claim that the price is driven by a number of factors that have nothing to do with reality. Now here is the proof that Google, Microsoft and Yahoo are price fixing:

Do a Google or Microsoft search and pick a keyword that has no ads, like ‘peaceful texans’.
Give Google $20, prepaid, and create an ad like this:

New Poetry For Texans
By ee cummings

According to Google’s public and written statements the cost of advertising is driven by competition, but when the ad has absolutely no competition the price is still ramped up from the fraudulent claim of 5 cents to $5. Anybody can take a few minutes to perform this experiment and prove that Google is engaged in fraud and price fixing. Microsoft does EXACTLY the same thing, advertising a 5 cent starting bid and then refusing to supply one single keyword that would meet such a claim. And the prices at Yahoo are even higher than Google or Microsoft. In a few months I hope to file a massive lawsuit against all 3 for criminal conspiracy and civil damages, but I have to wait for their actions to damage my business first. Oh, the money I am going to take from these tyrants.

Anyway, try out this experiment yourselves and prove to the regulators that Google and Microsoft are out of control and engaging in criminal behavior. If you have been ripped off send me an email:

Posted by: Very Upset About Ads | September 7, 2008 10:20 PM

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