Yahoo Ad Revenue Falls 14 Percent
Yahoo Inc., the world’s second most popular search engine tool, has reported a 14 percent drop in revenue in the first three months compared to the same period last year.
However, the company said that advertisers are gaining more confidence in spending in online display ads.
Search engine giant Yahoo Inc. has reported a 14 percent drop in revenue in the first quarter compared to the same period last year despite claiming that large advertisers have showed interest in spending more for online ads.
Some analysts believe the decreasing ad revenue and the 3.5 percent decline in shares will continue to the second quarter due to the company’s failure to improve its search engine business.
However, Yahoo executives claimed that the company has experienced several improvements including a stronger demand from brand advertisers and increasing profit margins. In a meeting with analysts, Yahoo CEO Carol Bartz said the display market “is coming back” which can result to a “rising quality of advertisers.”
Bartz said the revenue online display ads has increased by 20 percent in the first quarter compared to last year while the “revenue of guaranteed display ads” (these are reserved ahead of time and are more expensive) has jumped by 24 percent.
But despite some improvements, the company has shed assets, conducted massive layoffs, and reorganized its business structure after the online industry has experienced a massive advertising loss due to recession.
Currently, Yahoo is the world’s second most popular search engine, lagging behind Google which has reported a 23 percent increase in revenue in the first quarter. A recent study shows that about 85 percent of online users prefer Google than any other search engine tools.
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