Ads come first, says Yahoo
p2pnet news | Advertising:- In case you had doubts about Yahoo’s priorities, “Amid criticism that Yahoo’s efforts have fallen short in wringing more money from Internet search ads, Decker and Chief Executive Officer Jerry Yang agreed this week to try Google’s software as they negotiate alternatives to Microsoft Corp.’s $44.6 billion takeover offer,” says Bloomberg News.
“[...] fallen short in wringing more money from Internet search ads”?
Surely Bloomberg has it wrong.
Google, Yahoo, Microsoft, et al, are all about making users’ experiences fun and more exciting —- aren’t they?
That’s what they tell us every time they announce a new “initiative”.
But perhaps not.
“Yahoo spent more than $2 billion on acquisitions to build its own search engine, and released a program last year called Project Panama to make search ads more relevant and more likely to be clicked by users,” says the story.
“Now, Yahoo is acknowledging that Google still does it better, said Canaccord Adams analyst Colin Gillis. ‘What does this actually prove except to show how much Panama is lagging?’ said New York-based Gillis, who recommends buying Google and Yahoo shares and doesn’t own them. ‘They’re going to have some nice hard data into how much they’re behind’.”
Meanwhile, “Yahoo’s directors met yesterday to consider the [Microsoft] bid, a person familiar with the talks said,” adds Bloomberg.
But will they cave?
Yes, believes Pali Research’s Rich Greenfield.
wringing more money – Googe ads on Yahoo, April 10, 2008
Bloomberg News – Yahoo Says Ad Program Still Priority Amid Google Test , April 12, 2008
Rich Greenfield – ‘MyHooSoft’ better than ‘AolHoo’April 11, 2008
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April 12th, 2008 at 8:44 pm
It’s all about the money, man!
April 13th, 2008 at 2:51 am
well what else would it be about? the people? psh.
April 14th, 2008 at 11:42 pm
They do whatever they can to develop a site which uses what people want so that it attracts as much traffic as possible. That way it lures the most advertisers, who pay the site owner/s to advertise with them. Simple enough concept, and that’s how it is. The greater the popularity, the more they can charge. Of course most people don’t want to put up with ads, but they don’t care. Unfortunately some people will always click their banners at least out of curiosity. This is how they survive and even thrive when offering “free” products, which usually come with a price (”other” payments). Deceptive methods flourish and abound online.