Microsoft and AOL Enter 10-year Search Deal

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Microsoft and AOL have entered into a 10-year deal that will see Microsoft’s Bing replace Google as preferred search engine, providing all of the organic search results and search ads when users search on AOL sites, Ad Age has reported.

The deal, which comes into effect on January 1, 2016, will also see AOL handle display, mobile and video ad sales for all of Microsoft's properties, including MSN, Xbox and Outlook, in key global markets such as the US, UK, Canada, Brazil, France, Germany, Italy, Spain and Japan.

"Our clients will benefit from a very scaled solution to distribute media money at a global scale on the ads side, but also we're going to get a comprehensive search offer out of the deal that we think brings exceptional search capabilities, a great consumer experience and something that Microsoft continues to invest in," said AOL President Bob Lord.

As well as increasing the ad supply that Microsoft and AOL can sell on, the new alliance will also increase reach, with plans for the companies to eventually combine their user data, as well as that of AOL’s parent company Verizon’s data, to increase ad targeting, Ad Age reported.

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