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| Jeremy Woolf Managing consultant Text 100 Publi |
Ivy Wong COO TVB.com & former Yahoo employee |
Nick Fawbert COO Asia Pacific Aktiv Group |
Antony Yiu Search manager iProspect & wwwins Hong Kong |
YES |
YES |
MAYBE |
NO |
| “The Yahoo-Google deal is similar to the IBM-Lenovo deal. That let IBM focus on its core strengths while allowing Lenovo to grow in new directions. By handing over the search monetisation part to Google, Yahoo can focus its energies on integrating search with display advertising online. Yahoo is already number one in display advertising, and by investing more energy in this, it is likely to widen the lead over its rivals. Its historical adversarial role with Google has only delayed this process and has pushed Google to a point where it has the ability to overtake Yahoo in display.” | “I don’t know how ‘Microhoo’ or ‘Yahsoft’ would have worked. Microsoft and Yahoo have very different corporate cultures and it would have taken time for these companies to integrate. They would have to find a synergy and develop solid execution plans. This integration period might have given Google more leeway to solidify its search empire. On the other hand, partnering with Google will give Yahoo a chance to rethink its overall strategy and focus on building its strengths, which include portal services, community services, such as Flickr and Delicious, and Asia domination.” | “On the face of it, a Google deal offers Yahoo a direct line into a substantial, high-spending and active pool of advertisers that Microsoft can’t expect to match. But the broad consequence of the debate has been a heightened interest in political circles regarding anti-trust and data protection in the online industry. Advertisers will be torn between exploiting this weakness to hold prices down and glossing over the issue to keep communications strategy on track. If the deal results in restrictive legislation then it undermines the long-term interests of all three companies and their clients." | “Despite the supposed advantage of managing online advertising campaigns through a single channel, a larger Google-Yahoo! deal could end up being worse for advertisers than the Yahoo-Microsoft deal. A Google-Yahoo amalgamation could change the power dynamic among advertisers, agencies and search engines. Advertisers would be exposed to the risk of having new fees assessed. Google-Yahoo could control the amount of information available to advertisers. Google-Yahoo may turn out to be the only winner under this new arrangement.” |
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