subject: Yahoo Lowers 5% To 15% Of The Advertising Price To Please Advertisers [print this page] Yahoo is selling the company to the potential buyers, but its core advertising business is weak. In order to attract advertisers, Yahoo's advertising will reduce 5-15% of the price of some advertising. Yahoo's weakness in advertising business can be reflected from the data.
Atkinson said in the past year, its advertising agencies' investment in Yahoo fell slightly compared with the previous years. Since the former CEO of Yahoo Carol Bartz was dismissed, Yahoo's sales director Ross Levinsohn and other senior executives and their peers in recent weeks take turns to visit Atkinson.
They said as long as they can get access to advertising business, they are willing to do everything that is associated with. Atkinson said, however, its advertisers still see Yahoo as a way to cover a large number of users, but no longer purchase as before.
Yahoo's annual revenue of advertising business is $ 4 billion. Any weak performance of the business will affect its sales price. Yahoo's display advertising business including graphics, interactive and video advertising accounted for 40% of Yahoo's total revenue. But in the last quarter the year on year growth rate is only 5%. The growth rate in the first quarter has reached double digits.
According to the executives of the advertising, in order to reverse this decline, Yahoo began to curry favor with its biggest advertisers. In the recent months, Yahoo has lowered 5-15% of the price of some advertising, including the Yahoo home page, E-mail page and custom animation functions.
In the earlier of this year, in line with the release of the latest Disney movie "Pirates of the Caribbean," Yahoo has also modified the appearance of the home page Logo. Yahoo's spokeswoman said Yahoo had never done it for the advertisers before.
In addition, if Yahoo has different view on the particular advertising flow with the advertising agencies, Yahoo will charge according to the ad agency's data, rather than their own data. The executive of the advertising agencies said Yahoo's approach is rare before.
In order to better compete with technology rivals, Yahoo is also working with AOL, Microsoft to merge the supply of low-cost advertising and inventory. In theory, this move will enhance the value of advertising.
Yahoo's third-quarter earnings per share are 17 cents. The revenue is $ 1.09 billion. This performance is less than a year earlier. In the third quarter of 2010, Yahoo's net profit was 3.96 billion U.S. dollars, 29 cents a share. The revenue was 11.2 billion U.S. dollars.
