AOL, Yahoo and Microsoft join in new Ad pact against Google

Yahool, AOL and Microsoft are to pool their “Class 2 display”  ad inventory from their respective web properties and allow the other members to sell this to advertisers.

The deal will give each member greater capacity to sell to advertisers and deal with large orders internally, rather than having to farm these out to 3rd party ad networks.

Yahoo Americas head Ross Levinsohn  revealed the deal on behalf of Yahoo at a dinner meeting last night, with AOL CEO Tim Armstrong attended as well as Microsoft Advertising COO Dave O’Hara.

The deal appears to be targeted at Google, currently the largest display advertiser, and should give each member greater scale than they would have had individually.

Microsoft already has a search deal with Yahoo, and the two has been slowly eating into Google US search share, which is down 6.5% year on year so far.