What’s Yahoo’s Advertising Strategy?
A piece of news that was recently overlooked(and overshadowed today by Apple’s announcement, no doubt) was Yahoo’s $300 million acquisition of advertising network BlueLithium. This is following their nearly $700 million acquisition of RightMedia only a few months ago. So, Yahoo has spent nearly a billion dollars buying up ad networks. Why? To compete with Google? Not quite.
Yahoo realizes it has already lost the text ad wars to Google, in a big way. Anyone can attest to the fact that Yahoo Publisher Network, Yahoo’s answer to AdSense, is a steaming pile of crap, with poor targeting, excessive restrictions requiring complex workarounds, and lower payouts. But there is a much bigger market out there, one that brings in much more money than text ads, believe it or not: banner, display advertising. With its SmartAds offering, Yahoo is clearly looking to do something painfully obvious- bring contextual advertising and targeting to display ads. And to do that it needs a lot of advertisers and a lot of inventory- which is exactly why Yahoo has drop a billion dollars on ad networks which bring with them a lot of customers. Yahoo’s own Publisher Network is notorious for a lack of advertisers- buying up major ad networks is a smart, if expensive, move.
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Very interesting! I’m looking forward to seeing how this works out. As an owner of several large websites (blogs not included.. those are my fun things) I would like to see more options. More options is always better for publishers in the long run.
did you hear that amazon just came out with their own ad network similar to google adwords called click river? conversion rates are pretty high for me so far on that because people are there to shop i think, not just gather info like on google.
Seems like Yahoo has raised the white flag on Google’s Ad Sense in the Ad Battle. Let’s see if Yahoo can tap that bigger market through their banner, display advertising. Good luck to them
Very interesting, thanks.
I don’t think that banner ads produce more money than text ads. You have to remember that banners have been around forever, but it took contextual non-intrusive text ads to really boom the web ad industry.
great read, but i just wonder how things will shape up when microsoft gets itself into gear.
I would love to see Google get some competition. That is always a good thing for consumers.
Why is Microsoft and yahoo trying hard to compete with Google ? they are doing well in their own categories. Why not leave Search to Google. ?
Yahoo and MS is jealous of Google and they are working hard to catch Google and dominate the online space……
I think Yahoo just aquired mybloglog too. I think more time should be spent paving their own ways instead of trying to copy. But, isn’t that free enterprise? I love your blog , post more so i can learn.
Thank you from a dofollower
Dee
I’m just curios on how Yahoo gonna work from now on with the new acquisition. but i still say it isn’t gonna be like google !!
Interesting. Yahoo isn’t just buying up ad networks. They have bought a few social networking sites as well recently. Seems they are buying up net real estate. FYI you have a pharmacy spam comment right above mine!
It is interesting.Thanks for the information.
Its really hard for yahoo to compete with google.
Yeah mostly people recognize google than yahoo. Anyway im a google fan myself. Depending on what i search on by google gives more precise details informations. Sometimes yahoo give unnecessary informations.
Yahoo publishing still not active in Italy, anybody knows .. when does it start?
A great post, and it will beneficial for us.
Interesting post. Generally you have some very good information on this blog. Keep up the good work
Great post! Looking forward to your next blog entries
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i use Yahoo’s Advertising is relly do good and get same god clicks from yahoo and google us well for great deal i dont fell speend mony there is relly great deal.
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If all the post on the all blogs will be like this one it will be GREAT! Thanks.
I agree!
Nice article thank you!
their strat is to take over goooooogle!
Anytime you launch a new website, you should already have an idea of what plans you have for earning revenue.
Interesting post, I also found out last week that MSN is backign out of the Ad network and will be closing the doors on that.
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There is now way Yahoo taking Google over, mate!
They don’t have enough founds! Even MS can’t afford it!
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I love google more than yahoo
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i think that’s a good strategy
Very interesting article, but for my opinion Google Adsense is the best. didn’t try Yahoo Adsense yet.
Anyway thanks for sharing.
Yahoo is going to need a big breakthrough to be able to accomplish any sort of competitive edge against google.
Very informative and amazing.!! Thanks fot sharing this great article, will definitely benefit from this
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Thanks for info about Yahoo advertising strategy?
Very informative and amazing!!!! Anytime you launch a new website, you should already have an idea of what plans you have for earning revenue.
yahoo spending money very big…great information…thanks
This a definitely a very good read for me! Thanks for sharing this. I will bookmark this site, my brother would love to read this!
Glad to see that lots of people share my same interests and thoughts. Great Blog, I will continue reading new articles you post here in the future. Love your layout too.
good article, enjoy reading it
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Great article.Thanks for the info.My opinion is that Google-Adsense is surely better than Yahoo’s