Marissa Mayer just had a HUGE win

Marissa mayer mid Google yearsGoogleMayer in her Google years

Yahoo and Microsoft just announced a renewed search partnership.

But the renewed deal comes with major changes.

The most important: Yahoo used to have to put Bing ads against 100% of its search results.

Now Yahoo can do whatever it wants with 49% of its search results.

Yahoo could, for example, sell the other 49% of its search traffic to Google.

This is a huge win for Mayer.

Sources close to Yahoo have long claimed that such a deal would immediately boost Yahoo revenues. One source estimated that if Yahoo were able to outsource all of its search traffic to Google, it would boost its revenues by $US1 billion annually. That kind of deal isn’t in play, but something like it is.

There are a couple reasons a Yahoo-Google search ads deal may not happen.

Mayer talks a lot about Yahoo’s own ads. They are called “Gemini” ads. If Yahoo were able to make those ads as effective as Google’s it would be able to keep all of the revenue generated by them, instead of sharing revenues with Google. It may be tempting for Mayer to try that path first.

Plus, Google already owns a virtual monopoly in search advertising, and it may not want to draw attention from the Department of Justice with a big market share-expanding deal.

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