Accuracy in Media

WASHINGTON — Yahoo is under fire from analysts who question whether the company can bring in consistent advertising revenue.

yahoo mayerReuters reported that Yahoo’s CEO Marissa Mayer has made strides in changing the culture of Yahoo, but has yet to completely reverse the company’s fortunes.

Yahoo relies on advertising for revenue, which made up over 75% of its revenue last year. But, Mayer’s focus on products and not advertising is rubbing advertising executives and their companies the wrong way for a time. Now, Mayer and Yahoo are catering to ad executives again with lunches and meeting with agency representatives.

The change in advertisers’ attitudes are changing, but analysts and experts say the revenue boost will come in time.

Yahoo saw an 11% decrease in ad revenue last quarter, but that was due to advertising exchanges where marketers guy ad space placement across a broad breadth of websites. That narrowed down how much ad revenue Yahoo collected.

Meanwhile, rival Microsoft is battling Google for antitrust violations in Europe and now in Brazil. Google continues to crush its competition in most of its markets, but the antitrust lawsuits do not help its bottom line or reputation. Even China complained that Google’s Android software is running too much of the country’s smartphones.





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