Comcast in December sent out two requests for proposals: one to handle display and video advertising, another to handle search and text advertising. It has not yet decided who will handle search and text but expects to have a decision on that in the next month. AOL and Microsoft, along with Yahoo, were competing for display and video, according to a Comcast executive close to the deal.
The executive close to the deal said Comcast expects to generate $1 billion in revenue in the next five or six years through combination of the display/video and search/text ad contracts, plus ads sold by its own interactive and Comcast Spotlight sales forces. The will retain 20% of Comcast.net's display and video advertising to sell in-house and bundled as cross-platform and local deals.
Large sales force
Yahoo will not handle display and video advertising for non-portal Comcast sites, such as Fancast, which it recently launched; newly acquired Fandango.com; user-generated site Ziddio.com; and GameInvasion.com.
"One of the reasons we selected Yahoo is its expertise in terms of video advertising," said D'Arcy Rudnay, VP-corporate communications at Comcast. "We think they have a very large sales force, they have good relationships already with advertisers, are well known and respected and have a sophisticated platform, we think, on technology."
According to ComScore, the site has 15 million monthly unique visitors and had 80 million video views in March.