Bing Is The Biggest Loser In Yahoo Japan's New Google Deal

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Yahoo Japan’s new deal to farm out search and advertising to Google is the worst news for Microsoft Bing, which is in the process of taking over Yahoo’s search technology in the U.S.

As UBS analysts Brian Pitz and Brian Fitzgerald note today:

“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.

See Also: It’s Time For Web Publishers To Start Thinking About Bing SEO

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