Traffick - The Business of Search Engines & Web Portals
Blog Categories (aka Tags) Archive of Traffick Articles Our Internet Marketing Consulting Services Contact the Traffickers Traffick RSS Feed

Wednesday, April 22, 2009

The Incredible Shrinking Yahoo

Following on the heels of mixed results from Google, Yahoo released not-surprising numbers showing weak profit and year-over-year shrinkage of overall revenue.

To put it in perspective, if you weighed their Q1 2008 revenues against Google's Q1 2009 revenues, Google would have been three times as big. (That Yahoo sports more employees per revenue dollar by far is, of course, part of the problem -- and now the source of Carol Bartz f-bombs.) But year over year Yahoo declined again ($1.5 billion in revenues as against Google's $5.5), so proportionally it becomes even smaller as measured against its main rival.

Carol Bartz ranting in a conference call? Imagine what might have been accomplished if this type of common sense had arrived on the scene eight or nine years ago. Or at least a couple of years ago, when we urged Jerry Yang to "get rid of the clutter, and geek up." It's becoming clear now that Bartz doesn't do this for ego's sake; it comes from a focus on results.

Past coddling of redundant employees on mysterious missions is only part of the problem, of course. Yahoo's no startup, and austerity won't be the answer either. Yahoo faces similar fundamental problems to any digital media business. Few have definitively solved the business model problem because eCPM's on digital content -- other than search and classifieds -- are too low and there is no proof they're going to trend rapidly upward. As targeting improves and as buyer-seller efficiency issues finally get solved, there is still some upside around the corner.

And what about monetizable "inventory" -- or the degree of open-to-some-monetization user attention to the various online channels? Trending upward, to be sure. But not as rapidly as it once was.

The only sure answer is that the trend is up and that clutter and fragmentation need to give way to continued consolidation. Despite hopes to the contrary, there won't be a huge number of profitable digital media companies simply because inventory and ad rates are finite. The few left standing will have made good consolidation and acquisition moves. Bartz, for one, seems to understand all of this.

Labels:

Posted by Andrew Goodman




View Posts by Category

 

Speaking Engagement

I am speaking at SMX West

Need Solid Advice?        

Google AdWords book


Andrew's book, Winning Results With Google AdWords, (McGraw-Hill, 2nd ed.), is still helping tens of thousands of advertisers cut through the noise and set a solid course for campaign ROI.

And for a glowing review of the pioneering 1st ed. of the book, check out this review, by none other than Google's Matt Cutts.


Posts from 2002 to 2010


07/2002
08/2002
09/2002
10/2002
11/2002
12/2002
01/2003
02/2003
03/2003
04/2003
05/2003
06/2003
07/2003
08/2003
09/2003
10/2003
11/2003
12/2003
01/2004
02/2004
03/2004
04/2004
05/2004
06/2004
07/2004
08/2004
09/2004
10/2004
11/2004
12/2004
01/2005
02/2005
03/2005
04/2005
05/2005
06/2005
07/2005
08/2005
09/2005
10/2005
11/2005
12/2005
01/2006
02/2006
03/2006
04/2006
05/2006
06/2006
07/2006
08/2006
09/2006
10/2006
11/2006
12/2006
01/2007
02/2007
03/2007
04/2007
05/2007
06/2007
07/2007
08/2007
09/2007
10/2007
11/2007
12/2007
01/2008
02/2008
03/2008
04/2008
05/2008
06/2008
07/2008
08/2008
09/2008
10/2008
11/2008
12/2008
01/2009
02/2009
03/2009
04/2009
05/2009
06/2009
07/2009
08/2009
09/2009
10/2009
11/2009
12/2009
01/2010
02/2010
03/2010
04/2010

Recent Posts


Twitter Auto-Follow Limits Rankle Some

Google Revenues: What's Up? What's Down?

Page Zero Media Hits NYC!

Revenge of the Analysts

Perception, Not Reality, Could Topple Google in Se...

Hey, Yelp -- Welcome to the Concept of Dialogue!

GMail Developers Obsessed with Relationship Faux-P...

Whither Twitter Under Google?

Lululemon April Fools Home Page: Top Two Responses...

Is Guy Kawasaki Singlehandedly Ruining Twitter? (P...

 


Traffick - The Business of Search Engines & Web Portals

 


Home | Categories | Archive | About Us | Internet Marketing Consulting | Contact Us
© 1999 - 2013 Traffick.com. All Rights Reserved