Yahoo has effectively confirmed that it will soon introduce a competitor to Google's AdSense (contextually placed keyword ads) for publishers program. This is highly significant for both YHOO and GOOG, and investors in both companies should take careful note. The proof of Yahoo's imminent new service?
(via John Battelle)
Update: JenSense adds:
I have confirmation from a manager at Overture that they are in their beginning test phase, and more information will be available after that time...
- Signing up for the email notifications takes you to a screen that asks for the following details: name, company name, work phone, web site URL and monthly page views.
- The request for a work phone number and montly page views suggests that Yahoo's sales force will try to cherry-pick the largest web publishers from Google's network.
- Analysis here about why Google is vulnerable to increased competition for AdSense.
- Quantifying the vulnerability: Google generated 48% of its Q4 revenue from its "partners network". It includes major search partners like Ask Jeeves, AOL and Shopping.com, but it's fair to assume that a significant chunk of that 48% also came from small web publishers. Note also that Google pays a lower proportion of revenues to smaller publishers than to large search and content partners. A disproportionate amount of profit thus comes from AdSense for smaller web publishers.