Though earlier MSN has been displaying Yahoo’s ads on its search results page and partners networks; for the last several months MSN has been serving it’s own sponsored listings via its AdCenter. The move was nothing else, but the gradual transition on delivering its own ads exclusively. Officially MSN officially stops its relationship with Yahoo from July 2006. Yahoo has sent a newsletter at the end of June notifying that there will be no U.S. Sponsored Search Listings on MSN from this month. The official Yahoo announcement states that the MSN distribution agreement with Yahoo stops in June 2006 and though Yahoo regrets to lose MSN as a distribution partner, the change minimally effect the total amount of advertising traffic to Yahoo customers.

We think it will severly lower the value of Yahoo search traffic, as MSN comprises of affluent and loyal users who hail from good demographics.

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