Why Yahoo dip dip dip
Posted in Yahoo on Aug 14th, 2008
Here you go:
If we compare global online ad leaders, including Google, Yahoo, Microsoft, AOL, from Q1/2005 to Q1/2008, share of Yahoo’s global online advertising revenue slumped from 35% to 20%, a 43% loss in a 3-year period. At the same time, Google’s share grew from 43% to 65%, almost 50% in growth. (thanks to Web2.0 boom?)
How was Microsoft doing in the last 3 years? Not good. But MS’s business model doesn’t relies on ad revenue solely, while Yahoo collects money mainly from display ads. It really foretells that surviving as a free media platform won’t be as easy as 10 years ago. Economic conditions asides, when publishers find out more and more consumers becoming smarter (immune to online ads) and moving their attention away from portal sites to social sites, Yahoo’s cash cow will get thinner and thinner in the future.
Does Jerry yang have a new business model in mind?
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