Negotiating Comcast's Search Ad Deal with Google

PaidContent mentioned a WSJ report that Google's not making Comcast enough money from the search traffic on Comcast properties:

Comcast Unhappy With Google On Search Deal; Talking To MSN; Other Ad Inventory Talks

"Comcast thinks it should get a larger search ad rev share, and is also is unhappy about other terms of the deal. The company gets about $70 million in shared revenues through the Google deal, but wants $100 million, the story says."

Let's see: Google has the most advertisers, the most sophisticated ad program which allows them to serve ads on the largest percentage of searches, and does so at most likely the highest cost per click. Google's ahead on all three of those metrics.

Given that, who has the largest pie to share a slice of? Google.

If Comcast was to switch, Microsoft would basically have to buy the business.

Or, is Google in a position to say, "we'll give you an extra $30 million if stop lobbying against Network Neutrality."

Who's in a stronger negotiating position here?

What would happen to Comcast's portal if they stopped offering Google powered search?

Comments

1. Posted by: Anthony Nemitz on March 19, 2007 4:50 PM:

I think Comcast is grasping at straws with this threat. 70 million to Google is a drop in the bucket, while Comcast's portal has much more to lose. Google isn't going to make a move to please Comcast even if Microsoft tries to buy the business.

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