US Advertisers Oppose Yahoo-Google Concord

09 September 2008

NEW YORK: America's powerful Association of National Advertisers on Sunday declared its opposition to the contentious new relationship between search advertising giants Yahoo and Google.

The ANA has accordingly written to the US Department of Justice listing its objections. Although the letter's full contents have not been revealed, it "notes that a Google-Yahoo partnership will control 90% of search advertising inventory".

It also iterates ANA's concern that the alliance will likely "diminish competition, increase concentration of market power, limit choices currently available and potentially raise prices to advertisers for high quality, affordable search advertising".

Although the Yahoo-Google deal does not fall within the government's antitrust remit, the two companies have voluntarily [and sagely] offered to delay implementation for one hundred days to facilitate the DoJ's full scrutiny of the deal.

ANA president/ceo Bob Liodice said the organisation's submission had been made following discussions with the search duo and an analysis that included "input from the board's members".

They include executives of such marketing titans as American Express, Anheuser-Busch, General Motors, Procter & Gamble and Wal-Mart.

Yahoo wasted no time in responding to the association's  intervention, expresssing its "disappointment with the ANA board's position".

Ad rates, it said, would be determined by advertiser demand-driven auctions, and the Google deal would help create a "more robust" marketplace for Yahoo's advertisers.

And Google's position? Unknown. Its PR dudes apparently don't work Sundays.

Data sourced from Financial Times; additional content by WARC staff