Google's North American sales chief reiterated that neither Google nor Yahoo plans to set ad prices in their proposed search ad pact, a deal that has been hotly contested and is expected to be challenged by the U.S. Justice Department soon.
Tim Armstrong, president of advertising and commerce in North America, has issued two blog posts about the ramifications of the deal. One post addresses how the deal will impact advertisers, while the second argues that the deal, a partnership in which Yahoo will run Google's paid keywords alongside its own search results, is good for competition.

Armstrong's Sept. 18 and Sept. 19 posts come after Google CEO Eric Schmidt Sept. 17 admitted to reporters that the company didn't do as good a job explaining the ins and outs of its deal as it could have.

In the post for advertisers, Armstrong said ads are priced by an auction where an advertiser only bids what an ad is worth to it. The Google-Yahoo agreement, he said, will help advertisers convert more clicks into customers by showing more relevant ads on Yahoo, giving advertisers a better return for every dollar they invest.

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