Wed Jan, 2011 by Derek Mehraban
Yahoo says it expected the loss this last quarter. It recently merged its search engine with Bing and knew it would take time for that venture to pay off. Meanwhile Google upped its market share of searching from 77% last year to 82%. The verdict is still out on what this means for the future of Yahoo, it was, after all, a planned drop in market share. Yahoo has been laying people off, but with incoming executives it plans to hire some more people in the near future as Yahoo will be shifting around its priorities and divisions.
Yahoo did experience growth in revenue from its display advertising and Yahoo remained the leader in display advertising income. The cloud to that silver lining, however, is that everyone earned higher income from display advertising over the past year.
Digital marketers need to watch yahoo. It seems to be in a bit of an identity crisis, which can end very badly or very well. For now the jury is still out. Digital marketing campaigns using display advertising can use Yahoo, as Yahoo seems to be the best positioned ad server to push those ads.