September 9, 2008 – search marketing news pick for the day:

A proposed search advertising deal between search engine giants Google and Yahoo has prompted some major national advertisers, including Wal-Mart, Pepsi, Ford, and Sara Lee to send a letter of protest to the U.S. Department of Justice.

According to ComputerWorld.com, the Association of National Advertisers—the group responsible for representing the corporations involved, the letter, sent to Assistant General Thomas Barnett is a result of a “comprehensive independent analysis of the deal, which under Yahoo Inc. would run advertising from Google Inc. alongside its search results.”

“A Google-Yahoo partnership will control 90% of search advertising inventory,” said ANA President and CEO Bob Liodice in a recent post on the ANA website.

 When asked for comment, Google’s senior manager of global communication and public affairs, Adam Kovacevich  released the following statement: “Numerous advertisers have recognized that this agreement will help them better match their ads to user’s interests, and that ad prices will continue to be set by competitive auction.”

The Justice Department is currently reviewing the proposed four-year deal, which would generate an estimated $250 to $50 million in operating cash flow during the first year and up to $800 million during subsequent years.