Google & AOL Join Forces
By Melvin Ram - December 16th, 2005
Google & AOL have decided to tie the knot. Here is what is known about the deal:
- Google will pay $1 billion to Time Warner for a 5% stake in AOL.
- AOL’s search results produce about 10% of Google’s revenue and by keeping AOL from going to MSN, they have secured this 10%.
Goolge will give preferential treatment to AOL content in Google’s search results.- AOL rejected Microsoft’s offer because MSN refused to provide AOL preferential treatment in it’s search results. MSN said it would be unethical. Google has decided it will do it regardless of it’s ethical implications.
- Google’s site will include/promote AOL content heavily.
- Google will get access to Time Warners TV & film library which it could utilize to build an iTunes like service.
- AOL’s sales team will get access to the Google Network & will sell non-search ads to Google’s advertising partners (publishers).
Based on this, there are a few things a marketer should note/expect:
- Google will begin offering banner ad space on it’s partner pages, including content pages of AOL’s sites.
- Google will be giving preferential treatment to AOL’s content pages. If your targeted keyphrases compete with those of AOL’s pages, you may be pushed lower on natural search.
- With AOL’s huge push for On-Demand Video on it’s site, you can probably expect to buy ad spots between these movies via Google.
- Google had recently been exploring the offline advertising marketplace. Relationships with Time Warner may allow them to offer marketers the ability to buy ads in the Time Warner’s print properties via Google’s online interface.
There will be many more interesting discussions about the implications of this deal once details of the deal have been officially announced and disclosed.
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