Tuesday, January 27, 2009

Display ads are falling, Performance ads increasing

There will probably be a lot of coverage of Yahoo's earnings call (http://www.paidcontent.org/entry/419-yahoo-earnings-display-slips-2-percent-ceo-bartz-we-will-benefit-from-c/), particularly with new CEO Carol Bartz, but one thing that they noted is that advertisers are starting to shift away from online Display ads to more performance-based advertising.

Yahoo reports that Display ads have fallen 2%, with a shift towards performance marketing, an area that Yahoo have traditionally been weak in. As the online advertising market continues to mature, there will probably be a continued shift towards stronger metrics-based and more transparency in the advertising chain from click, through to conversion and sale.

Does this suggest another nail in the coffin for Yahoo?

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