Online Advertisement And CPC Prices May Increase Under Yahoo and Microsoft Search Ad Deal

Online Advertisement And CPC Prices May Increase Under Yahoo and Microsoft Search Ad Deal

A new study conducted by search-marketing firm GroupM Search that was published on Monday suggested that online advertisement proce may rise after the Yahoo and Microft internet search engines.

The report said that advertisers may pay as much as a 78% to buy ads on the combined interest service in comparison to what they’re paying to advertise currently on Microsoft’s Bing search engine. The report also stated that after the first three week period, cost-per-click and a lot of keywords will increase by at least 64% for unbranded keywords and 78% for branded keywords. After the market settles the research firm expects Bing’s paid-search advertising rates to remain unchanged at 13% to 23% above current prices. Yahoo’s paid-search advertising transition to Microsoft’s Bing is expected to be done as early as completed as early as next month.

“The industry has long known the variances of performance between Yahoo and Bing. What we found and what we believe has the biggest material impact for advertisers are the vastly different competitive sets between the two,” said Chris Copeland, CEO of GroupM, in a statement. “When you put such a large set of new advertisers of varying sophistication into the mix, you are going to see a less stable CPC [cost-per-click] marketplace.”

Microsoft and Yahoo announced a partnership last year to compete against the internet search giant Google and under the agreement, Microsoft’s Bing search technology will powered Yahoo’s search engine. Last August, both company announced that they had combined organic results and are planning on collaborating their paid-search advertising networks by the Holiday season.

“Anytime you interject change into the auction, you invite pricing pressure. In this case, we see historical evidence that suggests regardless of the bid tools and the preparation, a period of short-term volatility will exist,” Copeland said in a statement.

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