In the aftermath of the latest potential deal between Yahoo and Microsoft I got to thinking about how this would have affected us, other tier two engines and advertisers had the deal gone through.

Had the deal gone through, I feel the MSN/Yahoo deal would have been good for Tier 2. Tier 2 success relies on fulfilling the advertisers’ needs that are often not met by giants, Tier 2 search companies are often able to cater more to specific individual advertiser needs; working with them closely to create a successful campaign regardless of their size. A Yahoo/MSN acquisition would have been quite a feat for MSN to undertake,I am certain customer service would have been a casualty in the process of streamlining resources between MSN and Yahoo. Additionally, the combination of MSN and Yahoo advertisers would have driven bid prices higher in-turn lowering advertiser ROI giving advertisers more reasons to look elsewhere for quality eyeballs.

What would a Google-Yahoo deal mean if it happened?
In my opinion, a Yahoo/Google merger would never happen, the government would flat out deny it. It would cause an unwanted Web monopoly. This doesn’t rule out a strategic partnership between the two companies but I’m not sure it would be a good move for Yahoo. Relying on your direct competitor to fulfill your main revenue stream doesn’t seem like good strategy in the long run. For advertisers, the partnership would also mean MUCH greater advertiser saturation on the Google network driving up bid prices and inevitably reducing advertiser ROI.

This industry never ceases to amaze and surprise me almost on a daily basis, I am looking forward to seeing what tomorrow brings.

-Daniel Yomtobian, CEO