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Blue Lithium bought by Yahoo – Does it matter?

Yardley, a blogger lots of people follow for stuff like this because he is a Yahoo/Right Media employee, doesn’t comment on the Blue Lithium conversation, but he points to a blogger that he aligns himself with. Marcus implies that Google is cooked now that Yahoo has acquired a network.

I disagree. Here is the deal: Google’s strong advertiser network drives higher payouts. That advertiser network is driven by the awesome inventory that Google offers advertisers: Search results pages – the best performing inventory on the Internet. Just because Yahoo bought some network, they still don’t have that inventory or that mindshare.

Furthermore…. Blue Lithium can’t be that big an ad network. Look at the prices companies are going for now. I have no knowledge of any of this, but any reasonable person would assume that they are doing less than $100 million per year. I am sure Yahoo can supplement that, but it isn’t like they have this enormous advertiser base today.

This is not that different than saying that when AOL bought it was game over for Google. Err wait, it was!

2 Responses to “Blue Lithium bought by Yahoo – Does it matter?”

  1. Searchquant Says:

    I wonder if the real losers from Yahoo’s BlueLithium and RightMedia acquisitions are (AOL) and Valueclick.

    Does life get harder for and Valueclick now that Y! owns BL and RM? Does Y! try to retain more of the Y! remnant inventory inhouse?

  2. brent Says:

    That is probably closer to the truth, but it is only true insofar as Yahoo! is able to demonstrate that they are able to grow the strength of Blue Lithium’s advertiser marketplace. If they don’t build a stronger market of buyers, they will not be able to utilize more of Yahoo’s inventory. At least, that’s my impression.