Friday, June 22, 2007
Yahoo's network of sites has the most traffic according to comScore, and that will increase with the purchase of sports fan site Rivals.com.
Google's profitability is much greater than Yahoo's because its ad network extends beyond its own properties. I received an email from SEMDirector with thoughts from CEO Russ Mann, on what Yahoo should do to improve its search/ad revenue.
- Truly integrate search and display at Yahoo. Companies need to be able to purchase both without having to deal with multiple groups.
- Recreate a culture of engineering innovation.
- Leverage Yahoo's great content and detailed user information and give advertisers micro-control of ad buys across the Yahoo network.
- Buy a 3rd party ad server with market share and make the serving costs free to publishers; use Right Media platform to sell remnant space across that network - all through the Panama interface.
- Buy Facebook.
- Strike a deal with Baidu to serve all ads since Yahoo has so many more advertisers. This will increase cpcs for Baidu.
- Extend Panama to mobile search ASAP.
I agree with most of these ideas, although I'm still not sure about Facebook. The company has been unrealistic in its demands for being acquired, so the price would have to go down to make it a wise investment for Yahoo.
Yahoo has a great brand (better than Google's in consumer perception), quality content, and a loyal audience, but they need to be able to translate these assets into revenue more effectively.