The Internet giant Yahoo has announced a multiyear deal with Viacom that will provide it the exclusive power to serve search and content-related text ads on almost three dozen Viacom Web sites. According to the arrangements of the deal both the firms have kept their option of expanding the agreement to include all Viacom’s properties, an additional 140 sites. The deal is a evidently a crucial boost to Yahoo’s new Web ad system, called Project Panama, which was launched in early this year and is observed as a vital test of its ability to compete with Web search leader Google Inc.
Small text-based advertisements will appear next to search results and other relevant content on 33 Web sites owned by Viacom, including MTV.com, VH1.com, ComedyCentral.com, Nickelodeon.com and BET.com. The deal is expected to strengthen Yahoo’s position in the search market as it has been losing ground to Google in the online advertising business.
Financial terms and condition of the agreement have not been revealed yet. However, according to the prevailing practice related to commissions in the Internet industry, it can be assumed that Viacom would get 70 to 80 percent of the revenue generated from the advertisements. Officials of both the companies declined to reveal exactly how advertising revenue would be split between the two companies.
Viacom had recently filed a law suit against Google seeking $1 billion in damages and alleged that the online search leader’s video-sharing site, YouTube.com, has been repeatedly violating copyright laws by showing clips from Viacom’s shows without obtaining permission.
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