Yahoo! Does a Deal With Google to Display Paid Results

Yesterday, it was announced that Yahoo! would be supplementing its paid search results with those from Google. A press release from Yahoo! states:

The agreement enables Yahoo! to run ads supplied by Google alongside Yahoo!’s search results and on some of its web properties in the United States and Canada.

And goes on to say:

Under the terms of the agreement, Yahoo! will select the search term queries for which – and the pages on which – Yahoo! may offer Google paid search results. Yahoo! will define its users’ experience and will determine the number and placement of the results provided by Google and the mix of paid results provided by Panama, Google or other providers. The agreement applies to paid search and content match and does not apply to algorithmic search. The agreement also applies to current partners in Yahoo’s publisher network.

A statement from Google says (like Yahoo!’s) that the agreement is non-exclusive and means that Yahoo! "could enter into similar arrangements with other companies."

It will be interesting to see how this pans out for clients of Yahoo! and Google’s PPC technology. Will Google now need to create some new options when selecting ad networks on campaigns? And how long before Yahoo! yields completely to Google and purely displays Google search results?