Yahoo! executive: Advertisers returning to online

Josh Jacobs, Yahoo! VP of ad platform strategy, says that advertisers are returning to the internet.

“In the very short term, we are seeing people coming back, we are seeing budgets coming back up,” he said earlier this week at the Pacific Crest Technology Leadership Forum.

“I don’t know if I’d call it out of the recession this quarter but we’re stabilizing and heading in the right direction,” he added.

Yahoo! reported a 15% year on year fall in search revenues for the second quarter of 2009, while display revenues were down 14%.

Since announcing its results, Yahoo! has signed a 10 year partnership with Microsoft which will see Microsoft’s Bing search engine power Yahoo! search while Yahoo! will provide the worldwide sales force for both companies’ premium search advertising.

Under the terms of the deal, Microsoft will acquire an exclusive 10 year license to Yahoo!’s core search technologies, and have the ability to integrate Yahoo! search technologies into its existing search platforms.