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Yahoo believes bottom of ad market has been reached

The online advertising market is huge and each day more and more of the dollars spent by marketers to advertise all sorts of products and service migrate online from traditional media. The online advertising market is growing and with the frenzied growth will come new advertising opportunities.

Among the new advertising opportunities is mobile advertising. Mobile advertising is seeing massive growth right now. The caveat is that the user base for mobile advertising was so small to start with, that the exponential growth still means that mobile advertising is in its infancy. Many of the largest search providers are looking to mobile advertising as a huge profit center for the future.

Google dominates the online advertising market and the company is looking to continue that domination as the market for mobile advertising matures. Recently Google purchased mobile advertising tech firm AdMob for $750 million adding another feather to its mobile advertising cap.

Google isn't alone in looking covetously at the mobile advertising market; Yahoo is also licking its lips for a piece of the pie. Yahoo executive VP for North America Hilary Schneider said at the Reuters Global Media Summit in New York that Yahoo is looking to boost the number of mobile users as a way to attract more advertisers to its mobile advertising service. She said, "We're focused on it as a priority every day."

Schneider continued saying, "If you just look at the growth rates on mobile, they're incredible, they're extraordinary, but you have to just remember that they're starting with a small base. I really do believe that over the next five years you'll start to see material dollars begin to migrate."

One of the big factors that has to be overcome for mobile marketing it’s the wide variety of devices and differing mobile networks. Ads that will work well for one type of mobile phone may not work well for others. Schneider also said that she believes the bottom of the ad market has been reached in America.

She continued saying, "While we can't predict exactly the rate at which the economy will move forward, we do feel like the significant headwinds are behind us. We do feel confident that we have seen the bottom and that's behind us."

The search deal between Yahoo and Microsoft reportedly has some stipulations on traffic from Yahoo. Yahoo will get paid for searches based on traffic and according to ComScore Yahoo is currently losing marketshare to Microsoft's Bing search engine. Less traffic could mean that Yahoo gets less money from its search deal with Microsoft. Schneider says that Yahoo is focused on keeping the volume of search queries it processes up.



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By scrapsma54 on 12/4/2009 5:10:47 PM , Rating: 2
Immoral? Advertising bombards every screen I have. I pay a decent sum of money for my internet and my cable and for every piece of hardware that I own. In fact, a ton of advertising is misleading and harmful. Cool the web sites get a freebie and get paid, but advertising should be out of sight or just blocked.


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