Online Ad Spending Sluggish - At Least For Yahoo
October 18, 2006 – 9:19 amIf you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!
It should be very interesting to see the kind of numbers that Google reports, as Yahoo has turned in a very moribund quarter, and blames much of their decline on sluggish online advertising numbers. Yahoo’s stock dropped on the news that they had lower earnings, and expect even lower than anticipated revenue:
After the markets closed on Tuesday, Yahoo announced a 38 percent drop in its third quarter profit and dimmed the revenue outlook for the crucial holiday shopping season. Chairman Terry Semel acknowledged the company’s recent difficulties in a conference call and vowed to fix them with a “back to basics” approach.
Semel expressed outright outrage at the poor numbers. He hopes it will all change with the implementation of Yahoo’s “Panama” search advertising system. The system will attempt to do a much better job of targeting ads than the current one does, which would help it compete more solidly against Google.
The big question now will be, how well did Google do in the last quarter? They won’t get any revenues from their recent $1.6 billion acquisition of Youtube. But will their general advertising numbers be higher of lower? I’ll be interested in finding out, because online ad numbers trending down is not something I hope for at all.
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2 Responses to “Online Ad Spending Sluggish - At Least For Yahoo”
I have a hard time thinking that Google is going to report a low number for advertising. However, this is entirely based on the fact that I have increased my advertising with Google, not in some scientific study of the question.
It doesn’t suprise me that Yahoo! is down. I signed up to their service, but have never used any of their advertising mechanisms. It didn’t seem as complete as Google, though there was one up and coming feature with contextual searching that did interest me. At the time, they didn’t have it connected to a revenue stream. Maybe that has changed.
By Shawn Vincent on Oct 23, 2006
You weren’t the only one, Shawn. Google recently reported that not only were sales up, but that one out of every 4 dollars spent on online advertising is now spent with them.
By Darren McLaughlin on Oct 23, 2006