That quote in the headline comes from a new analyst note written by ad agency Avenue A/Razorfish. It explains [our emphasis] that: “[T]he deal will most certainly increase Googleâ€™s stranglehold on the mobile search market, and will be another blow to Yahoo and Microsoft, who are rapidly losing browser search share as well. Google currently owns 61% of the mobile search market, and already has deals in place with Sprint Nextel and T-Mobile. A deal with Verizon would give the search engine access to the current no. 2 wireless provider â€“ but soon to be no. 1 once Verizonâ€™s acquisition of Alltel closes.”
Regulators need to examine this deal on both competition and privacy grounds. The current review of the Google/Yahoo combination underway by the Department of Justice would be remiss if it didn’t address the mobile marketing issues. After all, Yahoo! mobile is a significant part of that company’s ad serving business. We still want to know whether Google will also be serving up mobile ads on Yahoo! as part of its forthcoming alliance.
source: Issue No 112 | August 27, 2008. SMTrends. Ave A/Razorfish.