Thursday, June 21, 2007

Money For Yahoo And Money For Google


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.

In The News

How Yahoo can catch Google San Jose Mercury News Compared with most companies, Yahoo is in good shape. But Yahoo's problem is that it's compared with Google, one of the fastest-growing and most profitable companies in the world. ..... more popular products that keep people on its site longer than any other property on the Web ....... Yahoo shouldn't try to out-Google Google ..... collection of highly popular Web sites and services ..... his company's uncanny ability to identify Internet services that resonate with ordinary Americans ..... Google has been earning 12 cents a search, compared with 8 cents for Yahoo. ..... uses math to figure out which ads are likely to get clicked on by Internet users, and it places them in the most prominent positions ....... Yahoo grew revenue a respectable 22 percent from 2005 to 2006, from $5.3 billion to $6.4 billion. But Google grew 73 percent from $6.1 billion to $10.6 billion. ..... he said Yahoo could still be No. 1 in search. "We need to figure out how to differentiate, and the way the current search game is being defined is not being defined by us." ...... average Internet users spend more than 11 minutes each time they visit Yahoo, compared with less than six minutes for Google and less than four minutes for Microsoft. ..... "They have the strongest reach and engagement on the Internet" ...... Yahoo's data on users could bring success during the next phase of the Internet, which he believes will include highly targeted, individualized advertising. ...... "Just like any other company, Google is going to mature and decline," Rafer said. "What comes after search advertising? You can beat your head against the wall. Or you can plan for the future for when Google is a one-trick pony."
Google's Iowa arrival should bring investment, jobs UI The Daily Iowan (subscription) create 200 jobs ..... an average salary of $50,000 each .... will pay the state an estimated $65 million in property taxes over the next 15 years. ..... combat Iowa's brain drain issue.

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