A blog for students of Professor Kagan's Digital Marketing Strategy course to comment and highlight class topics. From the various channels for marketing on the internet, to SaaS and e-commerce business models, anything related to the class is fair game.
Thursday, September 20, 2012
What Happened to Yahoo!'s Display Ad Business?
It was only two short years ago that Yahoo! was the undisputed leader in online display advertising, when they controlled 14% of the market. In 2011, however, Facebook and Google shot past Yahoo! in what used to be their bread and butter. eMarketer is now predicting that Google will control the market for years to come, with Facebook close behind, and Yahoo! trailing off into oblivion.
According to Yahoo!'s Q2 financial results, display ad revenue makes up 44% of their total revenue, making it their most important segment. Marissa Mayer, the company's newly appointed CEO, needs to figure out how to compete with her former company, as Google expands its lead in the category. Should Yahoo! continue to spend in an market where it is no longer the leader? Or should it seek to innovate in different niches where Google and Facebook haven't seized control? It won't be long before we find out.
Read the full eMarketer report here: http://www.emarketer.com/Article.aspx?R=1009363&ecid=a6506033675d47f881651943c21c5ed4
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