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Microsoft/Yahoo merger beneficial for advertisers

March 18, 2008 | Internet Marketing

Marketers probably would benefit from the added competition, if Microsoft succeeds in its takeover bid for Yahoo! and creates a stronger rival to Google, according to executives at some of the top ad holding companies.

Interviews by the Financial Times with agency executives since the unsolicited $40bn offer for Yahoo was announced last month make clear that they and their clients welcome the prospect of a stronger rival emerging to Google.

“If we have two competitors, a duopoly is better than a monopoly,” says Sir Martin Sorrell, chief executive of WPP, who has dubbed Google a “frenemy” – both friend and enemy to advertisers. Some agency bosses claim that Google’s dominance of search advertising has inflated prices and held back innovation in the fast-changing online market.

“The deal would probably be beneficial for advertisers, not just in encouraging price competition but also in terms of improvements in technology and the offerings for clients,” says Robert Lerwill, chief executive of Aegis.

Get the full story at the Financial Times

Related Article: Microsoft’s offer to buy Yahoo will likely succeed

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