Yahoo wins on the sticky factor. Yahoo visitors linger around longer. And so the Yahoo properties are better suited for ads that are dedicated to building brand names rather than pay per click text ads. Image ads are the answer for Yahoo. It might even have an edge for video ads. And video ads will be big money.
Yahoo is not anywhere near to beating Google on search. Google's search is an invention. Yahoo should keep at it, but it might be wiser to augment its strengths, and it does have those.
Semel is and has been an old media guy. He had a wonderful career during the pre dot com era. The guy is outstanding. But he did dampen innovation. He just did not "get it."
Jerry Yang might not be an MBA, but he has the instincts of a pioneer. He knows what it means to keep sniffing at the cutting edge.
Yahoo was hot property when Google was a non entity. Yahoo was so big and Google so small, Yahoo actually invested in a startup called Google. Yahoo back then did not foresee the Google potential, or they would not have passed on the opportunity to buy Google. That was years before Google offered text ads that have been minting gobbles of money.
In short, Yahoo is better suited for image and video ads. Google will continue with its edge on text ads.
And Yahoo Mail, that needs a major facelift. Make it easier to fight spam, danggoneit.
Google needs to do two things fast it can.
One, figure out a way to add a two second ad at the end of the video clips on YouTube. It is like when you blog at Google's Blogger, placing text ads on the property is so easy. It should be that easy for users to monetize their original videos. But the ads should not distract. They should not be a 30 second video in the middle. Rather an image ad at the end.
Marry Blogger to mathematics. Make it possible to put down equations easily. Do calculations. The property will go up in value for that.
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How Yahoo can catch Google