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Tuesday, November 15, 2011

Internet Giants Launched Advertising Alliance

In an attempt to give online monopolists like Google and Facebook a kicking, Microsoft, Yahoo, and AOL have started an advertising campaign, trying to restore the balance of power against the other giants.

According to the local media, the alliance will allow each member to sell the other’s unsold premium advertising inventory and show advertisements. The campaign is expected to be implemented worldwide by 2012.

In fact, display units make a lot of money, especially the big ones showing up on Internet pages and attracting marketers who are interested in branding their goods. A corporate vice president for the Microsoft Advertising Business Group, Rik van der Kooi, announced that the partnership in question appeared a “rising tide lifting all boats. Meanwhile, this move has already gained some support from the biggest advertising corporations. For instance, Nick Beil, president of the VivaKi Nerve Center, which is a part of the advertising holding company Publicis Groupe SA, gave an interview in which he recognized that this alliance was very important. The matter is that the alliance is attractive enough just because it broadens the potential reach of brand advertisers.

At the same time, the alliance is a little strange in terms of structure. Although the companies that participate in the agreement are striking a partnership and are going to benefit from it, they still remain the competitors to each other for advertiser spending and publisher partners. In this regard, the representatives of Yahoo, AOL and Microsoft admitted that they weren’t actually expecting any mutterings from the Department of Justice. The latter, by the way, could potentially frown upon the agreement as it could heavily reduce the competition and knock ad pricing. The matter is that competition between all the participants of the alliance is expected to increase. This, in its turn, can theoretically give online giants like Google and Facebook a run for their money.

At the moment, Yahoo, AOL, and Microsoft are predicted to considerably lose share in the advertising market. At the same time, Facebook is anticipated to outrun its rival Yahoo for the first time in 2011. It will be interesting to see what their new campaign results in

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