Yahoo's core advertising business deteriorates

Absrtact: October 19 News, according to foreign media reports, ready to sell the company's Yahoo, its core advertising business has gradually deteriorated. Atkinson is president of the PhD unit of Media Group Omnicom, which oversees annual 4 billion to 5 billion dollars in corporate advertising spending,

October 19 News, according to foreign media reports, ready to sell the company's Yahoo, its core advertising business has gradually deteriorated. Atkinson, president of the PhD unit of media giant Omnicom, which oversees annual 4 billion to 5 billion dollars in corporate advertising spending, including customers such as Starbucks, says the ad company's advertising spending on Yahoo has been flat to a slight decline over the past year.

After Yahoo fired former CEO Carol Bartz, he said, Yahoo's US regional president Ross Levinsohn and other senior executives approached their company to express their willingness to win business.

He added that while their customers still viewed the Yahoo site as a way to reach the wider audience, it was no longer necessary to buy a project.

Yahoo's 4 billion-dollar advertising business (which does not include commissions paid to Yahoo's corporate partners) will affect Yahoo's appeal to potential buyers.

Yahoo's display advertising business (with pictures, interactivity and film and television ads) can bring 40% of the company's overall revenue, but in its recent quarterly earnings, the business grew only 5% per cent, a significant setback from the 2-digit growth in the previous quarter.

Analysts expect Yahoo display advertising sales to be flat or slightly lower than last year, but on the contrary, the overall U.S. online advertising industry has increased by more than 20% this year, Yahoo obviously can't keep up with the big environmental footsteps.

Yahoo's partnership with Microsoft has dragged down search advertising revenue, which accounts for about 1/3 of overall revenue, while users ' monthly browsing of Yahoo sites has been reflected in Yahoo's earnings.

Stifel Nicolaus & Co analyst Jordan Rohan said: "The deterioration of the advertising business has reduced Yahoo's board's determination to maintain its independence and increased the likelihood of selling off the company." ”

Yahoo's potential buyers could ignore this, he said, as long as Yahoo's Tuesday financial report did not have a quarterly revenue of more than $1.2 billion to 1.26 billion dollars lower than expected.

A Yahoo spokeswoman said the company was in a quiet quarter and did not comment on sales and revenues. ”