Google and Yahoo Renew Their Vows
by Andy Beal

As you may have recently read, Yahoo (http://www.yahoo.com/) has 
recently renewed its relationship with Google (http://www.google.com/)
and will continue to display Google search engine results at 
Yahoo.com. There had been much speculation as to whether Yahoo 
would renew this agreement especially as many within Yahoo 
believed that the Google relationship had already cannibalized 
much of Yahoo's audience reach. In fact, Nielsen/Net Ratings 
(http://www.searchenginewatch.com/reports/netratings.html) recently 
released new search engine audience figures for the month of 
August, showing Google's audience reach barely two points below 
that of Yahoo's. With Yahoo already struggling to maintain 
dominance over MSN, it seemed unlikely that they would renew a 
relationship with one of their biggest search engine competitors, 
when options with Inktomi or FAST could fulfill the need without 
any direct competition. However, when you look at the strength 
of Google's name, power of their reputation and quality of their 
search engine results, you can forgive Yahoo for concluding that 
maintaining the relationship was the right thing to do. As the 
saying goes, "Keep you friends close, but your enemies closer".

The Big Change

So after months of speculation, Yahoo finally announced that 
they would continue their relationship with Google. The biggest 
surprise however, is that Yahoo has opted for a strategy that 
goes beyond merely maintaining the relationship. As of October 
10th, Yahoo directory results and Google web pages will no longer 
be shown separately and will instead be combined to provide new 
"Web Matches" (http://help.yahoo.com/help/us/ysearch/ysearch-22.html). 
These Web Matches will be the combined results of both Yahoo and 
Google indexes, but displayed using Yahoo's own algorithm. This 
combined structure moves away from the previous arrangement 
whereby Yahoo only displayed Google results when there were no 
Yahoo directory results for a particular search query. With the 
new Web Matches, you will no longer see the Google logo appearing 
in the top left of the screen and the only way you will be able to 
determine that a result has been drawn from the Yahoo directory, 
as opposed to Google, will be a link under the listing that reads 
"More sites about" and a red arrow graphic. This link will allow 
Yahoo users to click through to the Yahoo directory to view more 
websites within the same theme. While the new search results will 
use a Yahoo algorithm, initial testing has shown that this algorithm 
is very similar to Google's own, and in some cases it can be very 
difficult to see a difference between the order of Yahoo's results 
and those of Google.

The Impact On Your Website

So, what does this change mean for anyone looking for high 
positioning on Yahoo? Well, the biggest question centers on the 
benefit of paying $299 to be listed in the Yahoo directory. While 
there are Yahoo users who navigate through the directory of human 
edited listings, most prefer to use the search function to locate 
the product or service they are seeking. With this in mind, most 
companies will be able to utilize the traffic from Yahoo without 
having to pay the $299 a year that was once the only way of 
securing any chance of top positioning on the Yahoo search engine 
results.

So why would anyone continue to pay Yahoo $299 for something they 
can now obtain simply from being indexed by Google. Well there 
are a number of benefits for listing directly with Yahoo. First, 
your listing will display the Yahoo edited description and title, 
which is often better formatted than the Google results. The 
Google results will continue to show descriptions based upon the 
location of the keyword in a website's text. While this is useful 
for determining that a website is indeed relevant to the keyword 
searched, it can often look untidy and click through rates can be 
lower when Google results are placed next to the clean copy of the 
Yahoo editors. Secondly, being listed in Yahoo can have a huge 
positive impact on your positioning within Google. With Google 
reviewing websites that link to your site, a listing in the Yahoo 
directory often assists in obtaining higher positioning in Google. 
Opting out of the Yahoo directory in favor of achieving placement 
through Google could be detrimental to your ranking in Google. 
This "catch 22" situation has not been thoroughly analyzed, but 
it is likely that by not being listed in the Yahoo directory, you 
may hinder your chances of being ranked highly at Google and 
consequently your Yahoo positioning would suffer in the process.

Decisions, Decisions

Yahoo has been testing the new format for their search results 
for a number of weeks now, and my guess is that they will continue 
to tweak the format a little more. The full impact of the change 
will not be evident for at least a few weeks. In the meantime, 
what strategy should a company undertake? Pay the $299 for a Yahoo 
directory listing or rely purely on Google? The answer depends on 
your budget. If your company has a restricted budget, you may 
wish to wait and see what benefit you receive from Yahoo simply 
by focusing on your free listing at Google. However, if you have 
the financial resources, a link in the Yahoo directory will 
continue to benefit your website and will remove any doubt as to 
whether your site will show up in the new and improved Yahoo 
search results.

Further Reading:

Yahoo Renews With Google, Changes Results
http://searchenginewatch.com/sereport/02/10-yahoo.html 

Yahoo! Celebrates £18.5m Profit
http://media.guardian.co.uk/newmedia/story/0,7496,809110,00.html 

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Andy Beal is Vice President of Marketing for KeywordRanking.com, 
specialists in search engine marketing. Respected as a source of 
search engine optimization advice, Andy has had articles 
published around the world. KeywordRanking.com has grown to 
become one of the larger and more successful search engine 
marketing companies. They were one of the first companies to 
offer guaranteed levels of success using spam-free methods.
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