On 8th of December it was officially announced that all ads on Yahoo will now be served by Microsoft. This news about the latest integration has come of the search and advertising partnership that the two companies have signed almost a year back. For more than a year the planning and engineering of the alliance has been in constant change towards the development.

As the details are revealed slowly to the media it is becoming crystal clear of now that all the advertising on both Bing and Yahoo search will now be powered only by Microsoft’s adCentre which is located in Canada and U.S. for the time being. This recent partnership transition will provide the advertisers access to the combined inventory of both the services which is accounting for about 27.9% of all the searches as claimed by the search engine ComScore.

The benefit of this partnership will be very fruitful to all the advisers as they will be able to manage one account through a single platform for both the publishing networks. As of now the combined audience goes up to 163 million U.S searches and almost crossing over 15 million Canadian searches. Till now it’s Google which still remains at the top position in user research reaching up to 65% of all the searches.

Yahoo! has already started with its expansionist approach serving search results which is powered by Bing back in the month of august. However, it is impossible to overlook that the two companies are continuing to develop their own features around the same set of algorithmic to search results. As of now Bing has recently launched Facebook integration that surfaces results which are based on what your friends have “liked”

For this development yahoo has commented by saying that it is trying its best to focus on delivering the unique consumer experiences and as the engagement develops through the passing of time it will increase in their owned-and-operated search products to help in driving high-quality traffic into the combined marketplace which is increasing day by day. Not only this yahoo ended by stating that the company has unveiled some really big changes to its interface in this month.

Recently according to the press release published in the month of July 2009 it states that the agreement do not cover each company’s web properties and products nor email, instant messaging, display advertising or any other aspect of the companies’ businesses. In these areas the companies the vigorous competition will prevail.

The tenure of this agreement is 10 years which means that Microsoft will maintain a 10 year exclusive license to yahoo!’s search technology. Although powered by Microsoft Yahoo! will continue to innovate, build and improve Yahoo! properties ant the “users” experience.

The terms of the agreement also states that the consumer privacy between the two networks will remain limited to necessary operations and search platform improvements. The use of shared data between the two companies will remain highly confidential in order to maintain industry standard privacy practices, currently followed by each company today