Yahoo can’t profit at the moment

July 18, 2007

It seems Yahoo has fundamental problems in their ad sales team (at least that’s what I think).

Yet another quarterly profit report that’s down on last year and again it’s blaming sales of display adverts on the drop. However, everyone is reporting huge investment in online marketing and massive growth in this area. Yahoo have a major piece of internet real estate but just don’t seem able to capitalise on it.

I realise a lot of the increased online ad spend is going into paid search with the likes of Google, but display should be Yahoo’s meat and drink and shouldn’t be an area they are losing money on. Yahoo provides masses of eyeballs for banner adverts but it seems the money is being held back to be spent elsewhere.

The solution? Capitalise on what you’ve already got! Huge traffic, massive amounts of quality content, huge amounts of page views. Create brand centric areas which can be sold for large amounts of advertising dough and fix Yahoo 360, turn it into a proper social network. Yahoo still has a huge community who use Messenger, Mail, Flickr etc. All these users have a Yahoo profile which could be a 360 profile, fix the social networking aspects (or build them if they don’t exist) and you could get some loyalty back which in turn will attract the ad dollars back.


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