Wednesday, November 19, 2008

What’s Yahoo’s Advertising Strategies?

A section of account that was afresh overlooked(and overshadowed today by Apple’s announcement, no doubt) was Yahoo’s $300 actor accretion of Advertising arrangement BlueLithium. This is afterward their about $700 actor accretion of RightMedia alone a few months ago. So, Yahoo has spent about a billion dollars affairs up ad networks. Why? To attempt with Google? Not quite.

Yahoo realizes it has already absent the argument ad wars to Google, in a big way. Anyone can adjure to the actuality that Yahoo Publisher Network, Yahoo’s acknowledgment to AdSense, is a bleared accumulation of crap, with poor targeting, boundless restrictions acute circuitous workarounds, and lower payouts. But there is a abundant bigger bazaar out there, one that brings in abundant added money than argument ads, accept it or not: banner, affectation advertising. With its SmartAds offering, Yahoo is acutely searching to do something acutely obvious- accompany contextual Advertising and targeting to affectation ads. And to do that it needs a lot of advertisers and a lot of inventory- which is absolutely why Yahoo has bead a billion dollars on ad networks which accompany with them a lot of customers. Yahoo’s own Publisher Arrangement is belled for a abridgement of advertisers- affairs up above ad networks is a smart, if expensive, move.

Yahoo appear today that it will access the 80% of Advertising arrangement RightMedia that it doesn’t already own for $680 actor in banknote and Yahoo stock.

Yahoo ahead bought 20% of the aggregation in a $45 actor Series B annular of allotment appear in October 2006. The aggregation has aloft over $50 actor to date.

This move counters Google’s accretion of DoubleClick beforehand this ages for $3.1 billion, and signals that Yahoo wants added weapons in its armory to action the advancing online Advertising war above their new Panama release.

RightMedia runs an Advertising exchange that allows for abundant added able advertsing appraisement than earlier adjourned models (something still in the planning stages at DoubleClick). See our advantage of their RMX Direct artefact from August 2005.

RightMedia aswell tends to plan with ample average ad brokers and addresses the abbreviate appendage of the ad bazaar (as does DoubleClick), admitting Overture and Adsense are absolutely continued appendage articles with abounding abate advertisers and publishers.


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