10 April 2008
Yahoo! has intriguingly decided to run an experiment with Google to see if it can boost its search ad earnings.
A release from the company said it would begin a limited test of Google's AdSense for Search service, which delivers contextual ads to third party sites.
Analysts have previously recommended that Yahoo outsource its search advertising to Google and the company is reportedly in talks to do so in Europe. However, it is keen to play down the prospect of an expanded deal.
Yahoo has said the test "does not necessarily mean that Yahoo! will join the AdSense for Search program or that any further commercial relationship with Google will result".
The test is limited only to traffic from Yahoo.com in America and will not include Yahoo!'s extended network of affiliate or premium publisher partners. The test is expected to last up to 14 days and will be limited to no more than 3% of Yahoo! search queries.
The trial signifies that Yahoo is reviewing all alternatives to its potential merger with Microsoft. The move will not have any effects on any eventual takeover deal by the software giant.
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