Viacom and Yahoo Join Forces, Shut Out Google
April 11, 2007 by
Google's Adsense Loses Out to Yahoo's New Contextual Ad Engine in Viacom Deal
Cable network Viacom and Internet giant Yahoo! Inc announced Tuesday that they're forming an exclusive, multi-year partnership that will make Yahoo the sole purveyer of contextual advertising on Viacom's portfolio of high profile, highly trafficked websites.Viacom and Yahoo Join Forces, Shut Out Google
Viacom recently sued Google for $1 billion, claiming substantial damages for copyright infringement after YouTube (which Google owns) hosted a wide range of video clips taken from programs produced by Viacom.
Yahoo CEO and Chairman Terry Semel implied that the lawsuit was a motivating factor in Viacom's decision to choose Yahoo advertising over Google Adsense, telling reporters that "Viacom shares Yahoo's commitment to connecting users to the content, products, and services for which they are looking while respecting copyrights and other intellectual property rights at the same time."
The partnership between Viacom and Yahoo may have been formed in response to Monday's announcement of a similarly exclusive advertising partnership between Google and Time Warner/AOL. As part of that joint venture, AOL plans to launch a for-pay search service that incorporates technology developed by Google in order to bring personalized, targeted search results to consumers. It is also expected that Google Video will begin to prominently feature content created by AOL/Time Warner.
Unlike the Google/Time Warner partnership, the Viacom/Yahoo will only affect advertising and sponsored search capabilities, not the primary informational content on any Viacom sites.
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Jaleh Donaldson
Posted on 04/12/2007 at 8:04:00 AM