If anyone were ever wondering how strong the stranglehold Google has on the world of search advertising, then today’s deal between Google and Yahoo! will make it clear just how powerful Google has become.

Within just hours of yet another approach from Microsoft, Google has done a deal with Yahoo! that seems to enable Google to syndicate its search advertising (AdWords) on Yahoo’s distribution channel.This means before long that AdWords advertisers will be having their ads displayed on Yahoo! The deal is expected to bring $800m a year to Yahoo! - but the kicker is there is $250m break clause in the deal, which means that is MSN still tries to buy Yahoo! then that will have to be paid over if it happens within 2 years. (Source - Times of London)

What does this mean for the world of search marketing?

Well, firstly it cements Google’s status as the dominant player in the online search market -I would be surprised if the US competition authorities do not start taking interest in deals of this magnitude. There is a tipping point in the affairs of large corporations where their commercial success becomes seen as a threat and authorities step in to take over - remember what happened to Microsoft a few years back?

And it also surely means that soonish, then you will have the option to syndicate Google content on Yahoo!

Problem with that is, why would anyone sign up on Yahoo’s advertising program if they can just extend AdWords syndication? AdWords business model is a lot fairer in allocating cost per click than Yahoo’s! so I wonder just how good a deal this will turn out to be.

Watch this space…