15 thoughts on “Yaho-ouch!”

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  2. Yes, using the LinkedIn ‘career opportunities’ tag is a huge stretch. As an executive search consultant who uses LI heavily, there is a pretty low correlation between ‘career opportunities’ and someone who’s actively looking.

  3. Om, “a stretch” is putting it rather mildly. I guess 2.5 years ago I carelessly checked every available option on LinkedIn’s contact section. It’s now corrected, so you can fix your post by running a script against other names at Yahoo and linking to the next schmoe who needs to freshen up their LinkedIn profile from years ago! Or not!

    Not quite pretexting, but “dirty pool!” nonetheless!

  4. I choose to believe the entire financial and automotive sectors are spending less, not just with Yahoo. This makes sense, if you believe that “financial sector” advertising budgets were driven by the boom in real estate coupled with low interest rates on mortgages. This is all slowing down, isn’t it? Same goes for automotive, as you point out it’s tough times in Motown.

    That said, I do believe the current online advertising environment will change for most publishers. As I pointed out here and here, the primary driver of growth in online advertising will continue to be the long tail of advertisers, who measure their ROI specifically to targeting criteria.

    If I were a publisher relying on selling a general demographic or audience based on CPM rates, then I’d be concerned. Users want relevant ads, and advertisers want to reach relevant users.

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  6. Yahoo!’s challenges are symptomatic of the Web 2.0 implosion that I have been commenting about for a while. You can only go so far re. delivery of value (i.e. Click-Through-Rate [CTR] % growth on the part of AD buyers) if the target audience is driven by keyword based search that lacks context, and on top of that ad placements that are 1-dimensional re. obtrusiveness. The “Web of Keywords” and Pagerank is being gamed, and it ultimately eats into CTR

    The Semantic / Data Web is the next dimension re. Web usage patterns, and in this Open Data Access and context centric Web, I anticipate new business models (that include ADs) that will match and exceed what we have today.

    Google is in as much trouble as Yahoo! Or should I say, equally vulnerable. Both companies need to move beyond unintelligent search based AD models (keyword search algorithms only go so far! Ditto the “Walled Garden” and “Data Acces Connundrum” that is the achilles of Web 2.0 business pattern in general.

  7. I’d say loss of talent will be Yahoo’s biggest problem, and not the loss of a couple big names, but a broader loss of generally talented engineers who are actually writing all the code, who’d prefer a 20k instant pay hike to the raise that’s promised but never came.

  8. The reason Yahoo is hurting and talking about an online advertising downturn is due to the aweful conversion rate of their pay per click search advertising. It converts at around 10% of what you would expect to see from Google. Even MSN’s pay per click advertising converts at a higher rate. The problem is not the market or the medium, it is Yahoo.

    The loss of talent, as highlighted in Jianing’s comment above is the real problem. Without the right players, Yahoo is never going to compete.

  9. I buy online media for a mortgage company and I can tell you for sure that the financial services sector climate is definitely impacting the big online publishers. In a time when ppl are searching for efficiency, search is typically the best channel…it’s no surprise Google is not worried. And if you really look at it, the eCPM on search campaigns are generally higher than those of your display media buys (unless you are buying branding type home page spots). I would imagine financial services industry is hurting Yahoo more than Auto, as even though domestic auto makers are struggling, Japanese and Korean imports are going very aggresive.

  10. Yes the online ad boom is going to slow down but only for brand display advertising (whoose fortune is tied much more with yahoo than google).

    The direct response search ad boom is going to continue except in one niche thats the mortgage/realestate industry.

  11. well i hope this downturn is really isolated and more reflective of Yahoo’s shortcomings particularly compared to the more innovative and nimble and competitors, Goog/MySpace etc., which in addition to eating part of their lunch have have served to light a fire under Yahoo.

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