“According to comScore, Yahoo! Japan was roughly 36% of Yahoo!’s worldwide searches in Q2, resulting in a 3% pt drop for Yahoo!’s worldwide search share to 5% from 8% if Google were to replace Yahoo!/Bing, significantly reducing Bing’s ability to make inroads against Google outside the US.
Moreover, Japan’s advanced mobile ad market is a major intangible benefit in terms of generating learning’s from mobile consumer search behaviour.”
Meanwhile, because Yahoo U.S. has a revenue-sharing deal with Yahoo Japan through 2017, Yahoo U.S. could actually benefit if there’s upside from using Google (and not Bing/Yahoo) to run search and ads in Japan.
But regulatory approval could be a challenge, Pitz and Fitzgerald note, because Google and Yahoo Japan combine to control 80% of searches in Japan.
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