15 May '13, 12am

Why the Yahoo! Search Revenue Gap Won't Close

Why the Yahoo! Search Revenue Gap Won't Close

In spite of Yahoo! accepting revenue guarantees for another year from Microsoft, recently there has been speculation that Yahoo! might want to get out of their search ad deal with Microsoft. I am uncertain if the back channeled story is used as leverage to secure ongoing minimum revenue agreements, or if Yahoo! is trying to set the pretext narrative to later be able to push through a Google deal that might otherwise get blocked by regulators. When mentioning Yahoo!'s relative under-performance on search , it would be helpful to point out the absurd amount of their "search" traffic from the golden years that was various forms of arbitrage . Part of the reason (likely the primary reason) Yahoo! took such a sharp nose dive in terms of search revenues (from $551 million per quarter to as low as $357 million per quarter) was that Microsoft used quality scores to price down the ...

Full article: http://www.seobook.com/why-yahoo-search-revenue-gap-wont-...

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