As first reported by AllThingsD earlier today, Yahoo! has now confirmed that it will enter a partnership with Google to make the company one of its contextual ads partners. CEO of Yahoo and former Google employee Marissa Mayer picked up ad executive Henrique De Castro from Google last year, and rumors of a possible ad partnership between the two companies have circled since around that same time. While the previously rumored partnership that would have seen Google take over Yahoo’s lower-cost ad business didn’t pan out, Yahoo said in its statement that it would now use Google’s AdSense for Content and Google’s AdMob services “on various Yahoo! properties and certain co-branded sites.”

The full statement from Yahoo! is below:

Yahoo! Teams with Google on Contextual Advertising

Every day, people turn to Yahoo! for their daily habits — like search, weather, news or more. At Yahoo!, we’re focused on doing everything we can to make the user experience inspiring and engaging. One way we do that is by providing relevant and well-targeted content — whether that be editorial or advertising content.

Say you’ve been shopping for boots. If you see an ad for boots, that’s instantly going to pique your attention more than an ad for, say, a car battery. That’s better for users. This is why contextual advertising is such a powerful tool.

Today, we’re excited to announce that we recently signed a global, non-exclusive agreement with Google to display ads on various Yahoo! properties and certain co-branded sites using Google’s AdSense for Content and Google’s AdMob services.

By adding Google to our list of world-class contextual ads partners, we’ll be able to expand our network, which means we can serve users with ads that are even more meaningful.

For our users, there won’t be a noticeable difference in how or where ads appear. More options simply mean greater flexibility. We look forward to working with all of our contextual ads partners to ensure we’re delivering the right ad to the right user at the right time.

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