Explaining The Microhoo Deal

Kevin Lee weighs in on the recent deal, writing that the potential downside for advertisers is bid escalation caused by the merging of Yahoo's and Microsoft's keyword auctions. For example, certain verticals and business sectors in AdCenter may not have experienced significant competition in the past.

Lee asks a number of analytical questions, including, how will premium search advertisers transition between the Microsoft and the Yahoo teams? And what happens when a self-serve advertiser becomes large enough to be a premium advertiser?

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