Even the Stock Market Analysts Are on to Yahoo

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Yahoo! had another ho-hum quarter, but the surprise comes from analysts actually getting the real problem. Henry Blodget reports:

The advertiser has drastically cut spending on Yahoo (in favor of Google) and argues that Yahoo's problem is not Panama, but rather poor conversions and click fraud. This problem, the advertiser says, is the direct result of Yahoo's refusal to allow advertisers to select which sites in the Yahoo Network their ads appear on.

When does Yahoo realize the buy one buy all philosophy is costing them more than they make from it, and driving them into irrelevancy?

Comments

I know that I've personally

I know that I've personally pulled advertising to sites because of click fraud in the Yahoo! network. It got so bad that it just wasn't worth the effort. As long as they keep whoring out their search feed to everyone, they'll continue to have poor conversions. It's probably cost them 6 figure a year from me alone.

As a note, Google is slowly heading down this path too. I've been getting 10% of my traffic from a "search partner" that has a search engine that doesn't even work on a domain registered 2 months ago.

Seems to me that it's more important for Yahoo! (and Google) to pull as much money as they can from advertisers as fast as they can without caring about the quality.

Yahoo has put the screws

to a few clients who were also "whoring out the search feed" by cutting the payouts and giving a deadline for "compliance". Too little too late?

Cutting the payouts and

Cutting the payouts and giving deadlines is bullshit. If their partners are sending crap traffic and breaking rules, advertisers should not be paying for that traffic. They turned their back as their search partners crapped on advertisers, and now advertisers are turning their back on Yahoo!.

It's unacceptable that Lycos had a better PPC system than Yahoo!.

Yahoo needs to avoid a split

Yahoo needs to avoid a split of the Internet between "sites in Yahoo" and "sites in Google". Right now it's just web pages, but if the traffic gets split and then monetized separately, the web gets split and we all know who will lose if it becomes "My site's in Yahoo" or "my site's in Google".

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