When Yahoo and Google announced a search deal earlier in the month, there were obvious anti-trust concerns that needed to be addressed. It was also clear that Microsoft, the odd man out in the deal, would raise quite a stink. What wasn't so apparent was that Google and Yahoo would receive support from the very advertisers many believed would be hurt by the deal.
According to a Bloomberg report, several advertisers feel the Yahoo/Google pact will be beneficial to them, despite the resultant smaller marketplace for search ads.
"When it comes to online advertising, it's simpler to reach people if the access to the marketplace is controlled by fewer sources," said Eric Parkinson, who is responsible for the web campaigns at Empire Film Group Inc.
Google and Yahoo will wait until after a Justice Department review to close the deal, but in the meantime, they are still drawing the ire of lawmakers and Microsoft.
Rep. Joe Barton of Texas has contacted Yahoo chief Jerry Yang with his concerns, and Senator Herb Kohl publicly said the partnership raises "important competition concerns."
A Microsoft spokesman lambasted the deal, saying it would increase prices for advertisers, but it seems that not everyone in Bill Gates' camp is on the same page.
"What it will ultimately do is allow us to get broader distribution out of Google's ad platform," said Matt Greitzer, VP of search marketing at the Microsoft-owned Avenue A/Razorfish, who added that the deal "is going to be good news for advertisers."