NEWS: Google & Yandex enter strategic ad partnership
Google and Russian search provider Yandex (YNDX) have entered into a strategic partnership agreement in respect of online display advertising sales.
Via the new partnership, Google’s demand-side platform DoubleClick Bid Manager will be connected to Yandex's real-time bidding system, while Yandex's demand-side platform, AWAPS will join Google's real-time bidding (RTB) marketplace, DoubleClick AdExchange.
However, the agreement only relates to display advertising, and does not cover text-based contextual advertising. Technical integration is expected to take several months.
RTB is a new technology that allows buyers to evaluate, bid on and purchase ad inventory on an impression-by-impression basis. As a result of the integration of Google's and Yandex's RTB systems, Google's advertising clients will gain access to the advertising inventory offered by publishers in Yandex's Advertising Network, while Yandex's advertising clients will be able to bid for display inventory in the DoubleClick AdExchange. This partnership will result in a larger number of bidders, which is expected to also boost revenues for the most sought-after advertising spaces.
Nikolay Danilov, head of sales technologies at Yandex, said: "The integration of the two advertising systems will undoubtedly stimulate the online advertising market.The transparency that is characteristic of RTB systems creates new possibilities for growth. The more players, the wider range of ad inventory, the greater the competition for placement, and the higher the quality of the ads themselves. We anticipate that the partnership with Google will result in increased display advertising sales and improvements in ad quality."