Google’s Arora Says He’s Open to Expanding Yahoo Ad Relationship

Google Inc. (GOOG), which provides some Internet advertising services to Web-portal Yahoo! Inc., is interested in expanding the relationship, Google Senior Vice President Nikesh Arora said.

The two companies signed an agreement in February for so- called contextual ads, which use content on Web pages to show related listings. The promotions are based on Google’s AdSense and AdMob services.

Google, operator of the world’s most popular search engine, could also possibly work with Yahoo on search-based advertising, Arora said at a Deutsche Bank AG media and telecommunications conference in Palm Beach, Florida.

An alliance between the two could affect Yahoo’s 10-year search-ad deal with Microsoft Corp. (MSFT) Google in 2008 scrapped a search partnership with Yahoo after the U.S. government threatened to challenge the agreement.

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