An ad partnership between Microsoft, AOL and Yahoo! was announced last November and is now official.
Sidenote: Microsoft overtook Yahoo! ad division last year and merged both their services together.
Microsoft, Yahoo and AOL launch into ad partnership as they go against rival Google
Announced last year, Microsoft have announced that they will be launching into an ad partnership along with AOL and Yahoo! The partnership will be see the companies selling advertisements across other websites.
Specifically, as the Microsoft blog points out, three areas involved in the partnership are: the Microsoft Media Network, AOL’s Advertising.com and Yahoo! Network Plus.
The blog post goes on to say that as a result of the partnership, Microsoft Media Network are providing “marketers with flexible access to an even larger pool of high-quality inventory” along with additional audience reach. Microsoft have also said there will be real-time bidding.
Speculation among the media is that the partnership is a reaction to Google’s increased dominance in the ad space. Last year Google overtook Yahoo in display market share for the first time, along with Facebook becoming increasingly more prominent in the area.
The aim for the companies is that the partnership will benefit them in terms of sales due to their greater reach, with the three together presenting an attractive alternative to Facebook.
Microsoft to partner for ads?
News came last year that there would be an ad partnership, courtesy of All Things D, between the three companies.
The report then said that the new partnership calls for “the rivals to cooperate on ad sales, too.”
The report back then confirmed that they would be selling ad inventory on each other’s sites to compete against Google.
In 2011 the three main figures from the companies met Web publishers and ad buyers to discuss the deal. The idea is to convince people to sell the ads.
In the meeting some details were also confirmed over the what the exact ideas was: the companies want to sell each other’s “Class 2” inventory, rather than handing it over to ad networks.
Revenue was also confirmed to be shared between the companies, though while that would seem a peculiar decision to make the result is going to be that the three companies will make more money. The only obstacle is convincing their sales team to sell products.
The deal is also not exclusive: the partners can work together, and with anyone else.