Google keeps AOL

AOL and Google made a huge deal that allows Google to continue running their advertising on AOL

A number of huge concessions to AOL including

*allowing AOL to compete with google for text ads on the AOL pages

*running AOL-branded links and content on Google pages

*allowing google to sell image ads on Google’s pages

In a few years Google should have its eggs in more baskets, and this deal will, in perspective, look relatively tame. Right now, with search advertising encompassing almost all of Google’s revenue, these concessions seem enormous, but they keep AOL’s page inventory away from Microsoft. 1 billion is a paltry sum to keep Microsoft from getting a leg up on internet advertising revenue.