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Case Title:

Ad Wars-Yahoo! vs Google

Publication Year : 2006

Authors: Seema Prasad

Industry: Internet and e-commerce

Region:US

Case Code: MKS0080C

Teaching Note: Not Available

Structured Assignment: Not Available

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Abstract:

In 2004, online ad spending was growing globally and accounted for 49% of total revenues of consumer advertisers. Some analysts predicted that this would rise to $7 billion by 2007. Yahoo! and Google were in the middle of a fight in going after the ad dollars. While for Yahoo! advertising accounted for nearly 75% of its revenues, advertisers loved Google, too. Google’s barebones ad format drove click-through rates several times.

Yahoo! boasted a diverse online ad portfolio not only selling ads next to search results but also doing big business with so-called "branded ads". Google, by contrast, confined itself almost entirely to contextual search-based advertising. The case attempts to present the strategies employed by these firms to be one up on the other as the internet advertising matured.

Pedagogical Objectives:

  • To discuss strategies of Yahoo and Google advertising
  • To discuss the portfolio of Yahoo and Google.

Keywords : Yahoo, Google, Advertisement, Online ads, Google, Yahoo! Ad, Ad revenues, Marketing Strategies Case Study, Ad spending, Online advertisement, Online Ad portfolio

Contents:

  • Evolution of online advertising
  • Google's advertising strategies
  • Yahoo!'s advertising strategies
  • The other side of the coin
  • The ad wars: Yahoo! vs. Google

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