Behind Your Business

When Microsoft launched its Bing decision engine in 2009, it may have held out hope for an alliance with AOL. In fact, there were even rumors that Microsoft would buy out the struggling Internet service provider. But AOL has shunned Bing in favor of Microsoft's online nemesis, Google.

On Thursday, Google announced a five-year renewal and expansion with AOL. Google will continue providing search services to AOL's global content network, including all its properties. In return, AOL will get an undisclosed share of the search advertising revenue. In the new deal, Google will also include mobile search and YouTube.

"This agreement combines Google's expertise in search and advertising with AOL's strength in online content," said Eric Schmidt, chairman and CEO of Google. "It's particularly exciting to see our relationship expand into video and mobile. These areas are now at the heart of users' online experiences and at the core of both of our businesses."

New Search Trends

The renewed partnership includes new features that aim to improve and expand the Google products and services AOL users can tap into. Of course, it all starts with search products. Google is enhancing its search to improve the consumer experience across AOL's network of sites. On the advertising-products front, Google will provide AOL with ad formats that promise AOL consumers a better, more relevant ad experience.

Over the past 10 years of the Google-AOL relationship, search and video have become hot trends in the search market. The new five-year deal takes those trends into account. As AOL renews its focus on mobile apps and content, the companies said they will work together to expand the alliance to cover mobile search. And AOL and YouTube have agreed to a content partnership that will bring AOL's video content to YouTube.

"Today is another important step in the turnaround of AOL,"...