The rising dominanace of internet giants Google and Social Networking giant Facebook,other giants namely,Microsoft AOL ,Yahoo have teamed up together with an attempt to curb Google and Facebook’s online ad dominance.
An official announcement regarding this alliance was made on Tuesday Nov, 8 2011 which allows each of the companies to sell each other’s unsold premium advertising inventory — known as display ads — by early 2012.
Display ad units which command higher rates act as magnets to attract marketers interested in branding their products or services.
While these companies are striking a partnership, they still actively competing with each other for both advertiser spending and publisher partners, as well as maintain their own set of controls.
“We’re not reducing competition in any way, shape or form,” said Rik van der Kooi, corporate vice-president of the Microsoft Advertising Business Group. “As a result of transparency, the competition is only going to increase. (We) don’t expect any issues on that side.” Kooi also characterised the partnership as a “rising tide that lifts all boats.”
Both Facebook and Google Inc are expected to increase their share of online display advertising in the United States in 2011 by 9.3 percent and 16.3 percent respectively, according to estimates from research firm eMarketer.
Meanwhile, AOL, Microsoft and Yahoo are forecast to loose share, with Facebook expected to surpass Yahoo for the first time this year.
“Other players in the industry are welcome to join us. This is not in response to anybody in particular,” van der Kooi added.