4 Pointers to Why Yahoo Desperately Wants to Show More Display Ads!

Desperate times calls for desperate measures. Many people who have been questioning and discussing recent list of yahoo’s acquisitions including the prize catch of tumblr agree on following points:

1. Internet advertisement is bound to grow.
2. To survive, yahoo needs to strengthen its position as a content publisher’s network.
3. It also needs to strength its space in the mobile segment.


Here are the 4 big pointers to substantiate this.

1 Acquisition of tumblr : Yahoo’s eagerness to do an all cash deal points to it’s desperation to have a serious presence in the world of social media and leverage the blog network to show more ads (don’t be surprised if they discontinue the adult blogs,  despite of saying that they don’t intend to screw it)

As experts say ” This signature deal for new Yahoo CEO might help her transform the aging Web-media company into a producer of habit-forming online experiences. Tumblr has some 100 million monthly visitors, and its users publish 90 million posts a day. Those are some mighty habits, and they promise to offer considerable room for Yahoo’s advertising sales team.”

Changes in Flickr: Flickr used to have a Pro account for about $25 per year and included several benefits that Free accounts didn’t have like unlimited photo and video uploads, unlimited storage, unlimited bandwidth, no ads etc. However, now the pro account is for $50 per year (double) and the only benefit is no ads. They have increased the storage space as 1 terabyte for both free and pro accounts. This essentially means Yahoo is practically begging Flickr users not to use paid accounts.

New contextual advertising network: Yahoo has launched a new contextual advertising network — similar to Google’s AdSense and its Yahoo Publisher Network (YPN), abandoned in 2010. They have partnered with Search Alliance ally Bing and technology provider Media.net.

Acquisition of Mobile based start ups: Stamped, Alike Jybe (all mobile focused companies) have been bought over to help them become an important player in search, user recommendation and development of mobile content niche.

The big question is: Will yahoo deliver? So far under the leadership of Marissa Meyer yahoo seems to be calling all the shots right including that controversial decision of discontinuation of the infamous work from home policy. It will still take at least a year for yahoo to show any substantial progress.

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