Posted by: Rebecca on 30th Jul 2009Tags: ppc,pay per click,yahoo ppc,msn bingTwo years in the making, the Microsoft and Yahoo search deal finally came to fruition yesterday as the engines finally agreed on their Google killing ambitions. The decade long agreement will see Microsoft run the technology side of Yahoo and its own engine Bing, freeing up Yahoo for a pay per click and sponsored search sales push.

Billed as a credible threat to the dominance of Google, Yahoo said they expect the deal to free up millions of dollars that they would previously have invested in search technology. The wealthier Microsoft will call on its technology background to shoulder the development burden, leaving Yahoo to win over internet users – something Microsoft have struggled with.

The Yahoo chief executive welcomed the move, citing a new era for the search marketing industry. Carol Bartz said, "[This agreement comes with] boatloads of value for Yahoo, our users, and the industry, and I believe it establishes the foundation for a new era of internet innovation and development".

For pay per click advertisers, the deal is expected to bring more competitive pricing structures and a viable alternative to Google’s AdWords model. The deal will be subject to antritrust scrutiny.