Latest News: Technology |  Celebrity |  Movies |  Apple |  Cars |  Business |  Sports |  TV Shows |  Geek

Trending

Filed under: News | Technology News

 

Yahoo: Selling More Ads But Making Less Money

Jan 28 2014, 6:22pm CST | by

1 Updates
Yahoo: Selling More Ads But Making Less Money
 
 

YouTube Videos Comments

Full Story

Yahoo: Selling More Ads But Making Less Money

In 18 months as CEO of Yahoo, Marissa Mayer has demonstrated an impressive ability to put a cheerful spin on dismal facts. Tuesday afternoon’s year-end earning webcast was no exception.

“I’m very pleased with our progress in my first full year as CEO,” Mayer said. “Getting the company growing at the rate we would like will take several years, but we’re committed to growth in 2014.”

But will Mayer have several years to accomplish that? While earnings were up 40% in the fourth quarter, to 33 cents a share, performance in the core area of ad sales was just as weak as the recent firing of COO Henrique De Castro suggested it would be.

Revenue for the quarter was down 6% to $1.27 billion. That directly reflected a 6% decline in revenue from display ads, the most important category of business.

That’s not good, obviously, but Mayer and her CFO, Ken Goldman, insisted that the earnings contained numerous green shoots that promised future revenue growth. “The underlying fundamentals tell a recovery story,” Goldman said.

One example they cited repeatedly was the new in-stream advertising format introduced in April 2013. Mayer said the new ads have proven popular with users and advertisers. “They’ve demonstrated their effectiveness and we are confident they’ll continue to scale,” Mayer said. Stream ads are one of what she called several “incredibly exciting pieces happening inside of display.”

But Yahoo makes less per ad from the new format than on other display products. They’re the reason display revenue fell even though the number of ads sold was actually up 3% in the fourth quarter. While stream ads have the virtue of translating more easily to mobile screens, even with them, total mobile revenue was “still not material.”

Also not material was revenue from Tumblr, which Yahoo acquired in May for $990 million. But that’s about to change, said Goldman: “We think it will be an important element to our revenue in 2014.”

Is Tumblr’s traffic growing, rather than stuck on a plateau, as I reported it appears to be ? Mayer certainly made it sound that way when she claimed Tumblr’s audience is up 30% since last March.

Since March 2013, overall @Tumblr users have grown more than 30%, & mobile monthly users have grown more than 50%. $YHOO

— Yahoo Inc. (@YahooInc) January 28, 2014

A closer look, however, reveals that to be a cagily chosen time frame: It wasn’t until May 2013 that Tumblr’s traffic hit the plateau where it has languished ever since, according to comScore.

Mayer briefly discussed De Castro’s firing, saying he was “not a fit” and it was “regrettable” that it hadn’t worked out. Beyond that, she demurred “out of respect for Henrique.”

Source: Forbes

 

iPad Air Giveaway. Win a free iPad Air.

You Might Also Like

Updates


Sponsored Update


Advertisement


More From the Web

Shopping Deals

 
 
 

<a href="/latest_stories/all/all/31" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

 

Comments

blog comments powered by Disqus

Latest stories

Chrissy Teigen Stuns on Red Carpet and has TV Breakdown on Twitter
Chrissy Teigen Stuns on Red Carpet and has TV Breakdown on Twitter
Model Chrissy Teigen attended the DuJour Magazine and NYY Steak event on July 28 in New York City.
 
 
5.5-inch iPhone 6 is a Go Thanks to the Cargo Pants Fashion Trend
5.5-inch iPhone 6 is a Go Thanks to the Cargo Pants Fashion Trend
I am a big fan of the current iPhone size, but thanks to the fact that Cargo Pants are back in fashion I will actually get big iPhone 6.
 
 
Jessie J, Ariana Grande and Nicki Minaj do Bang Bang
Jessie J, Ariana Grande and Nicki Minaj do Bang Bang
Three of the hottest performers right now got together to make a song. Listen to Bang Bang below.
 
 
Lauren Goodger leaked Sex Tape is Shortest Ever
Lauren Goodger leaked Sex Tape is Shortest Ever
The British have a new sex tape scandal. It is more like Sex Vine as the Lauren Goodger Sex Tape is only 6 seconds long.
 
 
 

About the Geek Mind

The “geek mind” is concerned with more than just the latest iPhone rumors, or which company will win the gaming console wars. I4U is concerned with more than just the latest photo shoot or other celebrity gossip.

The “geek mind” is concerned with life, in all its different forms and facets. The geek mind wants to know about societal and financial issues, both abroad and at home. If a Fortune 500 decides to raise their minimum wage, or any high priority news, the geek mind wants to know. The geek mind wants to know the top teams in the National Football League, or who’s likely to win the NBA Finals this coming year. The geek mind wants to know who the hottest new models are, or whether the newest blockbuster movie is worth seeing. The geek mind wants to know. The geek mind wants—needs—knowledge.

Read more about The Geek Mind.