Hello Class please read the article provided and comment on: what do you think Yahoo is trying to do as far as tweaking their product mix?
Article:
"Yahoo to refocus advertising and user experience after 13% decline in revenue"
by Dianna Dilworth, July 21, 2009
As Yahoo sees a drop in revenue, the online giant is refocusing to build out its ad offering and the user experience on its site.
In yesterday's sales call, Yahoo reported revenues of $1,573 million for the second quarter of 2009, a decrease of 13% from the second quarter of 2008. The decrease was driven by a 15% decline in search advertising revenue and a 14% decline in display advertising revenue.
To address this drop, Yahoo is investing $75 million in the third quarter in its advertising infrastructure and user experience. The advertising updates include refining the user experience with ads and getting rid of what Yahoo CEO Carol Bartz calls “irritating ads” and “high frequency ads” which can detract users.
“We are now focusing on improving relevancy, decreasing frequency and potentially eliminating other ads to increase user satisfaction and engagement,” said Bartz. “Better user engagement delivers better ROI to advertisers.”
To drive this ROI, Yahoo will focus its efforts on its top 200 advertisers across the network, as well as offer new ad solutions through the Smart Ads platform and the My Display Ads, a service that launched in beta last year to help small businesses run ads on Yahoo.
Yahoo will also focus on the role of local ads, which is the underlying idea behind the new partnership with AT&T Interactive. Under the terms of the partnership, AT&T's advertising sales force of more than 5,000 will sell Yahoo display inventory to local businesses across the United States. The collaboration adds Yahoo's display inventory to AT&T Interactive's existing local online advertising portfolio.
To improve on the user experience Yahoo has revamped its homepage in which consumers can personalize their Web and mobile Yahoo homepages by adding apps and customizing their profiles. Whether a Facebook app or a Gmail app, users' favorite apps can live on their Yahoo homepages.
“Our vision, quite simply, is to strive to be the center of people's online lives,” said Bartz.
Article:
"Yahoo to refocus advertising and user experience after 13% decline in revenue"
by Dianna Dilworth, July 21, 2009
As Yahoo sees a drop in revenue, the online giant is refocusing to build out its ad offering and the user experience on its site.
In yesterday's sales call, Yahoo reported revenues of $1,573 million for the second quarter of 2009, a decrease of 13% from the second quarter of 2008. The decrease was driven by a 15% decline in search advertising revenue and a 14% decline in display advertising revenue.
To address this drop, Yahoo is investing $75 million in the third quarter in its advertising infrastructure and user experience. The advertising updates include refining the user experience with ads and getting rid of what Yahoo CEO Carol Bartz calls “irritating ads” and “high frequency ads” which can detract users.
“We are now focusing on improving relevancy, decreasing frequency and potentially eliminating other ads to increase user satisfaction and engagement,” said Bartz. “Better user engagement delivers better ROI to advertisers.”
To drive this ROI, Yahoo will focus its efforts on its top 200 advertisers across the network, as well as offer new ad solutions through the Smart Ads platform and the My Display Ads, a service that launched in beta last year to help small businesses run ads on Yahoo.
Yahoo will also focus on the role of local ads, which is the underlying idea behind the new partnership with AT&T Interactive. Under the terms of the partnership, AT&T's advertising sales force of more than 5,000 will sell Yahoo display inventory to local businesses across the United States. The collaboration adds Yahoo's display inventory to AT&T Interactive's existing local online advertising portfolio.
To improve on the user experience Yahoo has revamped its homepage in which consumers can personalize their Web and mobile Yahoo homepages by adding apps and customizing their profiles. Whether a Facebook app or a Gmail app, users' favorite apps can live on their Yahoo homepages.
“Our vision, quite simply, is to strive to be the center of people's online lives,” said Bartz.
4 comments:
Well besides the obvious of increasing their downed profits they are trying to cut back on those annoying repetitive ads we all hate ("you've won a free blah blah blah..."). They've become so repetitive that we don't pay attention to them anymore therefor and completely ignore.
I do really like being able to personalize your home page. By making it more your own and becoming more comfortable in using it and because of that, you end up using it more often which is exactly what yahoo is looking to do.
I think Yahoo's Plan its great, they are investing $75 million.... in order to see results, we have to invest right? Also what the CEO implied “We are now focusing on improving relevancy, decreasing frequency and potentially eliminating other ads to increase user satisfaction and engagement,” said Bartz. “Better user engagement delivers better ROI to advertisers.” Thats it is exacly what we need, we are all tired of those annoying ads... Its time they FOCUS more on users satisfaction... We'll see what happen, having such as strong competitor like google. it will be hard.......
Excellent comments class
Hello Class, you needed to reply toyour classmate as well.
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