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Yahoo! Transforms User Experience and Refocuses Advertising After Double-Digit Revenue Drop

22 Jul, 2009 Response This Week

SUNNYVALE, Calif. –– Yahoo! Inc. reported a decline in revenue in 2Q 2009 and plans to bounce back by expanding its advertising portfolio and developing a more customized user experience.

The search engine giant declared revenues of more than $1.57 billion for second-quarter 2009, a 13-percent drop from 2Q 2008. This was primarily due to a decline in search advertising and display advertising revenue.

To address this decrease, Yahoo! CEO Carol Bartz, as reported in, says, “We are now focusing on improving relevancy, decreasing frequency and potentially eliminating other ads to increase user satisfaction and engagement. Better user engagement delivers better ROI to advertisers.”

The company will offer new ad solutions through the Smart Ads and My Display Ads platforms. This will help get rid of “irritating ads” and “high-frequency ads,” adds Bartz.

Yahoo! recently partnered with AT&T Interactive, which will sell Yahoo! display inventory to local businesses throughout the U.S. It also refined its homepage to allow consumers to customize their homepages and profiles by adding applications, such as Facebook.  “Our new homepage is a perfect example of our efforts to create innovative products aimed at increasing user engagement while offering the most compelling advertising proposition in the industry,” says Bartz.

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