Yahoo is a big fish with eyes closed!
Earlier today, I was having a discussion with a friend about Yahoo’s new Search Marketing Platform and in course of the talks a strange thought struck my mind.
The discussion went something like this:
Me: Yahoo’s search advertising business is no where close to that of Google and that scenario looks less likely to change for next 5 years or so.
My Friend: Yes, because Google has more than 70% share of the searches that happen on the Internet. And then Google’s ad serving technology is also more intelligent. Google Adsense publishers also out number those of the YPN.
Me: But isn’t Yahoo is the biggest portal on the Internet with most number of daily visitors.
So why doesn’t Yahoo open it’s own inventory for it’s Search Marketing platform?
After having said this I realised that the thought isn’t a bad idea at all.
Yahoo has spent good money in building it’s do-it-yourself ad serving technology very similar to that of Google Adwords. No doubt Yahoo gets way lesser number of searches everyday and their search ads revenue would never be as high as Google’s. But, if they could put some more effort in optimising their ad technology to serve contextual targeted ads on Yahoo.com, Yahoo regional portals and online services in their sub-network then they could actually earn a lot more revenue than what they earn from the existing system.
Currently Yahoo’s portal inventory is monetised by ad sales and to do that they require a huge sales force and support staff to draw advertisers, placing ads, furnishing ad slots etc. I don’t understand why can’t they include their own inventory in their own marketing platform!
Does it not make sense? A self serve technology that will enable advertisers to select keywords or topics and then bid for millions of ad slots on Yahoo’s portal inventory. What’s stopping them?
I think the pressure generated by competition in search business has made this big fish close its eyes who can’t see this worm. And then search was never their business; information portal was!
Spicy Curry! Digg it
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