Friday, August 10, 2007

Analysts warn of declining Yahoo display ads

Many market commentators predict that a decline in display ads at Yahoo could cripple the company's fortunes, Bloomberg reports. Having lost the search war with Google, the company has been through a tumultuous period of late and recently replaced Terry Semel as CEO.

At its current low ebb, Yahoo shares are trading 38 per cent below the company's five-year high and analysts believe they could plunge further. The main problem facing the firm at the moment is that fast-growing social networking sites MySpace and Facebook are rapidly eating into Yahoo's display ad share - which is where it makes the largest proportion of its money.

These include videos, animations and billboards. Yahoo has been somewhat left out because Google has an Internet Advertising deal with MySpace, and Microsoft has partnered with Facebook.

Meanwhile it’s other products such as email, mapping, photo-sharing and instant messenger have strong competition from services provided by Google and Microsoft.
Yahoo News: News posted on 11/07/2007 16:36:42

Source:
directtraffic.org

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