Hype Of Potential Microsoft Yahoo Merger Was Overrated To Begin With

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A merger would not have a considerable effect on the online advertising landscape in the first place.

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According to LA-based interactive advertising agency Apollo Interactive, the outward effects of a potential Microsoft-Yahoo merger in terms of reshaping the online advertising environment are little despite the media attention.

"A merger would consolidate two major players," says Coleman Engellenner, Director of Advertising at Apollo Interactive, "but it would be insignificant in the grand scheme of planning and buying digital media, as we currently have hundreds of ways to generate considerable reach."

While both Microsoft and Yahoo each draw much attention on their own, a merger would not have any significant impact on the way in which media is bought or evaluated, or the way in which consumers use the sites.

With the case of AOL, who made similar acquisitions when it bought both Advertising.com and TACODA in 2007, the merger has resulted in revenue losses as they face struggles to unite the ad sales divisions. The merger also has not changed the way media planners and buyers buy AOL properties yet. Microsoft and Yahoo are essentially the same: portals with search engines. Perhaps the only noteworthy effect the merger could have is the increased ability to reach Hotmail and Yahoo mail users under one buy.

"As much hype as this merger generated," said Engellenner, "It would affect stockholders far more than media planners and buyers. I think a lot of that was lost in the mad race to cover the story."

About Apollo Interactive
Apollo Interactive is an internet advertising and marketing agency with offices in Los Angeles and Dallas. Founded in 1995, the independent, privately held agency is routinely ranked on Top-50 lists of online advertising agencies in the US. Apollo is proud to serve prestigious and recognized brands such as Jack in the Box, Curves, WellPoint, and Chuck E. Cheese's.

David Bohline
Chief Operating Officer
Apollo Interactive, Inc.
Phone: (310)-836-9777


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