Google has reached an agreement that gives Yahoo! the ability to use Google's search and contextual advertising technology for content advertising programs.

According to the deal, Yahoo! will be able to use Google’s AdSense(TM) for search and AdSense

Yahoo! has the option to display Google ads alongside its own natural search results in the US and Canada. Yahoo! can also serve contextually targeted advertisements on its US and Canadian web properties as well as on its current publisher partner sites.Yahoo will continue to operate its own search engine, web properties and advertising services.

Yahoo! and Google agreed to enable interoperability between their respective instant messaging services bringing easier and broader communication to users.

"This commercial agreement provides Yahoo! with the opportunity to deliver more relevant advertisements to users and provide advertisers and publishers with better advertising technology to help them succeed in their own businesses," said Google chairman and CEO Eric Schmidt. "This agreement will preserve the competitive and dynamic online advertising space."

Yahoo! will now be able to complement its own advertising program with Google's advertising technology. As a result, advertisers will be able to better reach consumers, and Yahoo! and its current publisher partners can generate more revenue. Yahoo can use Google's advertising technology on as many or as few of its search result and content pages as it chooses.

This non-exclusive agreement allows Yahoo! to enter into similar agreements with other advertising providers. In addition, Yahoo! will maintain relationships with its own advertising customers and will continue to rely exclusively on its own advertising program outside of the US and Canada. The agreement has a term of up to 10 years: a four-year initial term and two three-year renewals at Yahoo!'s option.

Financial terms between the two companies have not been disclosed.

Although Google and Yahoo are not required to receive regulatory approval of the arrangement before implementing it, the companies have voluntarily agreed to delay implementation for up to three and a half months to give the US Department of Justice time to review the arrangement. - TradeArabia News Service