Google and Microsoft have agreed to pay each other more for free advertising, but only after Google and its Bing search engine earn a return on investment.
The deal, which Google and MSN announced Monday, could open up billions of dollars in new revenue to the companies.
Microsoft, Google and Twitter are all vying to grab more of the free advertising pie, and with the new deals, both sides could end up making millions of dollars each.
Microsoft has agreed to make a 20 percent return on its advertising spending on the Bing and Google platforms.
Microsoft also said it would be opening up new revenue streams to advertisers through new partners and partnerships, including partnerships with other major tech companies, including Apple, Facebook and Amazon.
The company said it is working on other revenue streams as well.
Google and Bing each earn a percentage of the $8 billion spent on Google ads each year.
Microsoft has said it hopes the new partnership with Microsoft will boost its revenues by $2 billion per year.
It also hopes that the deal will boost Microsoft’s share of the search advertising pie.
Microsoft said it expects to spend about $5 billion on search advertising this year.
Google is expected to make about $4 billion on Bing ads and about $1 billion on Google News.
Microsoft and Google have a large digital advertising business together, but they have a much more aggressive rivalry.
Google’s advertising revenue has been steadily declining as the search engine has struggled to compete with Apple, Amazon and Facebook.
Google has been losing money for years, but it has recently begun to make money again, thanks to Google Now, which lets users tap on topics to see how they will fare with Google.
Microsoft and Google had previously agreed to a similar deal that would pay each company $5 for each 1 billion search ads clicked on.
But that deal has since expired, and both sides are still negotiating the terms of the new deal.