Yahoo apparently considered outsourcing search monetization (WSJ), but decided against it: ….over the summer, Mr. Yang did actively assess one major sacred cow: the Web-search-advertising business it built up at great expense in recent years. Under the scenario discussed by top executives, Yahoo would have outsourced that search-advertising activity…
Yahoo apparently
considered outsourcing search monetization (WSJ), but decided against it:
….over the summer, Mr. Yang did actively assess one major sacred cow: the Web-search-advertising business it built up at great expense in recent years. Under the scenario discussed by top executives, Yahoo would have outsourced that search-advertising activity — which places small text ads next to Web search results — to either Google or Microsoft Corp., the people say. One of these people says Yahoo raised the idea with Google.
Such a move would likely give Yahoo an immediate revenue bump representing hundreds of millions of dollars annually, because Google, for one, generates about 40% more revenue for each consumer search than Yahoo, according to Majestic Research Corp. in New York. It could also bring in additional one-time payments from any outsourcing partner and would reduce some of Yahoo’s operations costs and capital spending.
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