Yahoo has announced an advertising partnership with Google, not unlike working relationships it has with other companies. Yahoo in its current form has quite a few pages for advertising display and it makes sense that its CEO of less than a year, Marissa Mayer, would call on her former colleagues in Mountain View to fill those spots with Google’s contextual ad units.
As we navigate the web, both on desktop and mobile, we’re used to seeing Google’s display ads, and they do very well. Mayer has insight into how those ads perform, so this is basically a no-brainer for Yahoo. Mayer was employee No. 20 at Google, and has been able to see its Ad product mature over the years.
The interesting part about Yahoo’s search is that its led primarily by the editorial content that’s posted on its homepage. It’s a different type of search, if you will. Google presents you only with a big open box, whereas Yahoo subliminally influences your searches based on the popular news being displayed.
This is a unique opportunity for Google to get its display ads onto some highly relevant and targeted content, rather than tossing remnants into extra spots that might never get clicked. Yahoo wants to make some money, and that’s not bad news for investors. But are Yahoo’s users interested in clicking on ads? That’s the question.
The deal is not an exclusive one, but if everything performs well, it wouldn’t be surprising to see the relationship start to run deeper. This is also a good way for the two companies to test out how they can work with one another on other potential products and partnerships.

http://www.wasconet.com/yahoo-signs-deal-with-rival-google/