Marissa Mayer

The Internet search alliance between Microsoft and Yahoo appears to be stuck in neutral, and Yahoo CEO Marissa Mayer wants that to change. Speaking at the Goldman Sachs Technology and Internet Conference in San Francisco Tuesday, Mayer said that the pact with Microsoft was not meeting expectations.

“One of the points of the alliance is that we collectively want to grow share rather than just trading share with each other,” Mayer said during her talk.

She added:

“We need to see monetization working better because we know that it can and we’ve seen other competitors in the space illustrate how well it can work.”

The remarks come at a critical time and follow an announcement last week that Yahoo planned to work more closely, placing advertisements from Google’s AdSense and AdMob properties on Yahoo sites.

Microsoft and Yahoo launched their search alliance in 2009, joining forces in an effort to compete more effectively against Google. Microsoft provides the underlying search technology for Yahoo and powers the search-related advertising platform. So far, the results haven’t met expectations, and after coming on board, Mayer was talking extensively with Microsoft CEO Steve Ballmer about improving the partnership last year, according to AllThingsD.

According to Reuters, Mayer also plans to cut back on the company’s line-up of mobile apps and bolster its online properties.

Earlier today, Yahoo purchased Seattle mobile startup Alike.

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  • guest

    I love how these Yahoo/MS articles all focus on MS’s RPS failures but not Yahoo’s sales ones. Both partners have missed their goals as best I can tell.

  • Bob

    Partnering with Google recently probably didn’t do much to boost the partnership or advertiser’s perception of Yahoo/MS as a viable alternative to G.

  • Bizdevguy

    “Not meeting expectations”. Funny.

    • Revolvingaliastwerp

      What’s even funnier is that I can’t find a single report that actually quotes her saying that.

  • Guest

    Kudos to Marissa for raising the bar. Both Yahoo! and Microsoft can benefit, and in turn search customers can benefit, from an improved cooperation between these two industry leaders.

    • KyleM

      She’s not raising the bar. She’s playing the same public blame game that Bartz did, while similarly omitting Yahoo’s own abject failures in the alliance. And since she has already done a deal with Google, not just threatened it like her prebecessors, it’s apparent that she’s not doubling down on the partnership, MS should use this development, and the recent FTC decision to let Google off with a hand slap as ideal excuses for exiting Bing. $16 billion down the drain.

  • guest

    “Mayer said that the pact with Microsoft was not meeting expectations”

    Reuters ran with that title. But there’s no supporting quote in their article and two others I’ve read actually talk about revenue per search improvements and how the two teams are working well together, with no mention of not meeting expectations. Obviously both hope for more than they’ve achieved so far. But that’s different from quoting her on something that is potentially damaging to the partnership and which so far I see no actual support for.

  • Brent

    With a “partner” like Marissa, who needs competitors?

  • Scott Moore

    Seems somewhat disingenuous to say that the MS partnership isn’t working while at the same time placing competing google ads on the same site.

    Personally, as a consumer and small business owner I would like to see more competition to google ads, whch are far more predatory and monopolistic than Windows could have ever hoped to be. And note that I’m not really flaming Google, I’m just sayin…

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