What is the biggest problem of the deal between Google-Yahoo?”
If an advertiser submits a bid on both Yahoo Panama and Google, will the higher-priced Google ad preempt the one on Yahoo? Last in a series. (Google and Yahoo last week agreed to a brief delay in the agreement to give the Justice Department time to continue its antitrust probe.) This week, let’s examine what I see as the biggest problem of the deal: bidding against myself. How and why might I find my own Yahoo Panama ad preempted by my own Google ad at a higher bid? I might have a higher bid on Google (plus its current search partners) than I do on the identical keyword (and similar match type) in Yahoo because: * The traffic converts better in Google. * The average shopping cart size is higher for visitors from Google, AOL, Ask, and the like. * There are fewer advertisers in Yahoo, so I don’t need to bid as high even if I were willing to. So the only way to stop my more expensive ad from being served into Yahoo from Google is to: * Lower my Google bid (losing position and scale). * Ra
