Yahoo buys Right Media, stepping up the war in online advertising

The war in online advertising gets more intense. Just a few weeks after Google bought DoubleClick, Yahoo today announced it’s acquisition of Right Media, an online advertising exchange. This means Yahoo is gearing up in the online advertising war with main rival Google. It also means Yahoo is upgrading the outdated Overture-technology it acquired years ago.

“We hope to revolutionize the way ads are bought and sold on the Internet and, in turn, drive more value for advertisers, publishers, and partners,” Yahoos chairman and CEO Terry Semel writes at Yodel Anecdotal adding a description of Right Media as a “democratic model” connecting various online ad players like advertisers, publishers and ad networks in an open and efficient way.

We agree, to the extent that the new environment of advertising requires new technology. Google will pay $3,1 billion for DoubleClick and the prize for Right Media is $680 million. Will the investment pay off for the companies, who are both competing on the market for selling and brokering different ads across the web? Are we watching Yahoo’s move beyond portal? And can Yahoo threat the protein-drinkers at Google?

In New York Times, Miguel Helft describes the four-year-old company Right Media as running an exchange in which advertisers and publishers buy and sell online ad placements in real time through an auction system. “DoubleClick, which specializes in serving ads on Web sites, announced recently that it would develop a similar type of exchange,” he adds.

Bloggers widely discussed the subject Monday. At SearchEngineLand Danny Sullivan described Yahoos move as fighting back against Google’s recent plans to acquire DoubleClick, which”itself is seen as Google jumping more firmly into the display ad network game”. Both moves to me underscore how neither players’ own existing ad networks have apparently been good enough for their display ambitions, he adds. Michael Arrington at TechCrunch views the acquisition as a signal that “Yahoo wants more weapons in its arsenal to fight the ongoing online advertising war beyond their new Panama release”.

At DownloadSquad Brad Linder notes that the big search portals ain’t just about searching nowadays, instead Google and Yahoo are now two of the biggest names in online advertising.

The point is well taken. What is the role of the big search portals in the future? How shall they find their profile in advertising?
Back to Terry Semel who writes that at Yahoo they think that supply and demand in advertising should be regulated by the marketplace, not a closed platform. “We think our open approach is a clear differentiator from others in the industry and will provide significant benefits to publishers and advertisers,” he notes.

We’ll see about that. Personally we’re interested in Googles next move. And we wonder when Yahoo will start serving their own, boosting lingonberry-drink to employees.

By John Furrier and Tina Magnergard Bjers

PS. To add extra fuel to the fire: Don’t miss SiliconValleyWatcher-writer Tom Foremskis piece on FAST, the new leading European search firm that sais search traffic from its customers has surpassed Yahoo and will overtake Google in 2 years…

Author: John

Entrepreneur living in Palo Alto California and the Founder of SiliconANGLE Media

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