Yahoo! Fires Back at Google

Yahoo! Fires Back at Google: “Yahoo! raised cash-flow guidance at the close of its analyst day Thursday, a day when the company announced an email initiative to compete with that of search rival Google.”

A slew of both Yahoo! and Google product announcements yesterday created a lot of media buzz. I’ve read all the articles (namely, the ones by CNET, industry newsletter Search Engine Watch, and, and there were a lot of them, so here is a quick recap of the developments.

* Yahoo! senior vice president of communications and consumer services Jim Brock announced that Yahoo! Mail would increase the storage limit for its free e-mail subscribers to 100 MB. Premium subscribers and those that use SBC Yahoo! DSL and SBC Yahoo! Dial access packages would have “virtually unlimited storage,” in addition to the ad free Web based interface and other premium “perks”.

* Google launched a beta version of Google Groups 2, aimed squarely at Yahoo! Groups. In addition to allowing users to search the entire Usenet archive and post messages to Usenet, Google Groups 2 goes a step further and allows people to create their own mailing lists.

The move is not all that surprising. I had been predicting, or maybe it was hoping, that Google would launch such a service.

* Yahoo! search technology now powers the search results of and its affiliated network of sites. previously used Google since last year, after replacing LookSmart with it. Several weeks ago, it turfed Google sponsored search listings and contextually-targeted advertisements in favour of those from Yahoo! subsidiary Overture Services.

So, it appears Google is feeling what it’s like to get the shaft by a major distribution partner now.

* And finally, Google announced it will begin selling image, or banner, advertisements on partner Web sites that participate in its AdSense distribution program for AdWords advertisers that want to take part. Eventually, it may introduce banner ads on its own network of Web sites.


2 thoughts on “Yahoo! Fires Back at Google

  1. I just hope Google doesn’t forget their roots – simplicity and such. If they do image ads, I hope they’re generated by the server or something and really, really simple and non-intrusive (like those seizure enducing ones seen on other sites).

  2. For now, Google’s aim is implement banner ads on its AdSense distribution partner Web sites using the targeting technology of its normal text ads. If Google did extend banner ads to its own site, I assume Google would set some standards. Ads must be no larger than 50 KB, be GIF format, and not induce seizures. No Flash based or pop-up ads, etc.


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