In the last few weeks as more information has started to trickle its way from Yahoo! and Microsoft about the search alliance, I have started to share some information on this blog to facilitate this knowledge transfer. Ultimately every single advertiser who is managing a PPC account on both Yahoo! and Microsoft should be aware of the impending changes in order to best prepare for them.

I should also correct myself as in a previous post I called the Yahoo! and Microsoft Search Alliance a ‘merger’ when in fact, the new relationship between these two companies cannot technically be called such.

Why It’s Not a Merger

Yahoo and Microsoft will still exist as separate entities and the companies will be working together on some things, while competing on others.

The collaborative efforts will have the following impact:

• All advertisers will use Microsoft adCenter to centrally manage their PPC account. Your ads will appear on both properties, the Yahoo and Bing search engines, but this will be managed via Microsoft adCenter.
• Microsoft will provide the search algorithm for the organic and paid search results for both companies
• The Microsoft team will support standard advertisers, ultimately those smaller advertisers with lesser budgets
• Yahoo! will support the premium advertisers, agencies and resellers

Both companies will still compete:

• Each company will maintain its own display advertising program
• Web properties and products, email and instant messaging will not be affected by the Search Alliance
• Both companies will own and innovate their own consumer search experience to compete for searchers and search queries
• Both companies will service their respective affiliate search partners and Yahoo! will continue to syndicate its existing search affiliate partnerships

Transition Planning

We know that the transition will be happening, now it a question of when. According to Yahoo! the plan is to transition US accounts before the 2010 holiday season, which translates to roughly November 2010. Should the transition not succeed in this timeframe, it will be left for the start of 2011 to protect the holiday season. We know that the transition period will be initiated in late summer, so you should ensure that all your ducks are in a row by early August to prepare for this.

One can assume that the advertisers spending more money will get priority service and may thus be privy to more options and information. However, even without knowing exact dates, it is important to think about and develop your transition strategy. There are a few options to consider:

-       Keep your existing AdCenter account and optimise: you may have an existing account that has a suitable structure, a good click history and simply requires some focused attention as you build the account to handle significantly higher volume and budget.

You should begin optimising this account NOW – start adding ad groups and keyword baskets from your existing Yahoo account. Focused attention now, will result in a higher quality score that will be beneficial in a more competitive and expensive market. (Click costs will go up on AdCenter – this is inevitable, we just don’t know by what percentage, so prepare for this).

-       Create new AdCenter account and import from Yahoo / 3^rd party: You may wish to cut your losses, scrap that old AdCenter account and start fresh by setting up a new account and importing either your Google structure or Yahoo structure to the new account. This will ensure that your strategy is more streamlined because you will be working with similar structures – this might not be optimal from a demographic perspective because we’ve learnt that searchers act differently on the various search engines. However, we are all entering the unknown with this search alliance so copying a more optimised and better built out structure in Yahoo to AdCenter, might be a good alternative.

At this stage, there is still a lot that we do not know, but what is important is for advertisers to begin thinking about this PPC transition and planning accordingly. Advertisers should also follow updates closely so as to stay on top of this story as it develops. One handy way of doing this is to set up Google Alerts for relevant search terms so that the pertinent information is delivered at your doorstep so to speak.