Silicon Alley Reporter disagrees...
Google is firing back at the idea that its search ad deal with Yahoo will lead to higher search ad prices -- the heart of the antitrust opposition the deal now faces in D.C., in the States, and in Europe.
Specifically, in a blog post, Google chief economist Hal Varian targeted some July research from online ad agency SearchIgnite that claimed that the deal would lead to 22% higher keyword prices on Yahoo! Varian:
After taking a close look at the study, I believe it makes several flawed assumptions and uses questionable methodology. The paper suggests that advertisers will be getting the same performance from the same ads, just at higher prices. We believe that advertisers will be getting significantly better performance at prices that reflect that improved performance.
Specifically, in a blog post, Google chief economist Hal Varian targeted some July research from online ad agency SearchIgnite that claimed that the deal would lead to 22% higher keyword prices on Yahoo! Varian:
After taking a close look at the study, I believe it makes several flawed assumptions and uses questionable methodology. The paper suggests that advertisers will be getting the same performance from the same ads, just at higher prices. We believe that advertisers will be getting significantly better performance at prices that reflect that improved performance.
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