• Cnet News.com, Tuesday, September 9, 2008 12:45 PM

Is Google's search partnership with Yahoo -- a move that would give the Web giant a near 90% share of the search ad market -- a bad deal for advertisers? Cnet's Robert Hof doesn't think so.

For starters, Hof points out that search ad prices are not set; they're determined through an auction, which means that Google "won't necessarily be able to wield pricing power like classic monopolists." Even so, marketers are concerned that prices will rise anyway, because more advertisers will be competing for fewer keywords once Google starts selling keywords on Yahoo Search.

From a consumer perspective, Hof says this isn't a bad thing at all, because presumably, since Google's ad system is better, they will be seeing more relevant ads. Advertisers, too, will see more clicks from better leads: "It just seems like the prices will rise only if the ads are more effective," Hof says, adding that advertisers should be willing to pay more for better leads.

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