Some feel that Yahoo needs to play to its strength in display ads and present itself more fully as what it is: a media company and publisher.
“Yahoo needs to lean toward that more,” said Greg March, group digital media director with ad agency Wieden+Kennedy.
March noted the company's recent purchases of online advertising company Right Media and ad network BlueLithium, as well as its intention to leverage these and other assets with a commitment to behavioral targeted advertising.
“With their search engine, together with their play to use behavioral targeting to identify business purchasers, they could innovate in a very interesting way in that territory,” March said.
Yahoo's potential advertising partnership with Google was closely watched. As it developed over the summer, the plan was for Google ads to appear next to some of Yahoo's search results and on some of its Web sites, bringing $250 million to $450 million in added revenue to Yahoo. Under pressure from federal regulators concerned about maintaining a competitive digital advertising environment, Google backed away from the plan last month.
But with a No. 2 position in search and leadership in many other areas, Yahoo is an attractive media platform, Smith said.
“Yahoo is still a top player, no matter how you measure it,” he said. “Yes, there are times when companies suffer management turmoil. But if you advertise on the Web, you have to look at them. The value is there.” M