Yahoo says the purchase will solidify its position in the emerging online video advertising market and has given Yahoo relationships with more than 75% of the top TV advertisers. Maven isn’t what most would think of as an advertising firm. Maven is involved in testing new ad formats rather than actually selling ads to websites.
Hilary Schneider, executive VP for global partner solutions said in a statement, “Video is projected to be the fastest growing segment of the online ad market, and Maven will significantly help advance Yahoo's strategy, expanding the video opportunity for publishers and increasing the efficiency and effectiveness for advertisers.”
Only time will tell if this Yahoo purchase will help its ailing stock and help bring Yahoo back to its former glory. DailyTech recently reported that Microsoft offered to buy Yahoo for a whopping $44.6 billion, which Yahoo subsequently turned down. That denial led to Microsoft considering a hostile takeover of Yahoo.
Few doubt online video is the future of online advertisements. This was the key point in the Writers Guild of America strike that ripped billions from economy in California. According to a study from Parks Associates released today new multimedia advertising platforms in the U.S. will capture a massive $12.6 billion in revenue by 2012. Broadband multimedia advertising will account for more than $6.6 billion of that figure.
Yahoo is attempting to shore itself up for the future. What is questionable at this point is if Yahoo can hold on until the industry matures and its $160 million purchase of Maven starts pulling its own weight.
Yahoo isn’t alone in the search world when it comes to making purchases of advertising companies. Google purchased DoubleClick in December of 2007 for $3.1 billion. Yahoo countered by purchasing ad company BlueLithium in September of 2007 for $300 million.
quote: maybe you didn't notice how much MS makes compared to those bigger companies? have you seen their profit margins each quarter?