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Yahoo to axe non core services to improve profits

May 15, 2012 By: Dr Search Principal Consultant at the Search Clinic Category: AdWords, bing, Customer Service, Ecommerce, internet, Microsoft, Pay Per Click, Pay Per Click Marketing, Search Engine Marketing, Search Engine Optimisation, Search Engine Results, search engines, Technology Companies, Uncategorized

Yahoo has confirmed plans to shut down dozens of services which are not seen as core to the firm.Yahoo to axe non core services to improve profitsAs a result they said that it would be “shutting down or transitioning roughly 50 properties that don’t contribute meaningfully to engagement of revenue”.

The CEO Mr Thompson did not identify which units would be abandoned, but noted that news, finance, sports, entertainment and mail were safe.

“Each of our products and services may individually generate more engagement than most start-ups or even mid-sized companies in certain markets, but that does not mean that we should continue to do everything we currently do,” he was quoted as saying in a transcript of the conference call by Seeking Alpha.

The chief executive also noted that its search alliance with Microsoft was “not yet delivering” what had been expected.

The two firms agreed to team up in 2009. The idea was that Microsoft would provide Yahoo with the search results produced by its Bing service, which Yahoo would tailor to its audience. In addition Yahoo’s salesforce would target “premium” advertisers on behalf of both firms.

Mr Thompson said the UK and France were currently being moved to Microsoft’s search algorithm, and that other parts of the EU and Asia would follow.

However, he added that Yahoo was “working hard with Microsoft” to address the fact that the software firm’s AdCenter technology was still not delivering the sort of revenue it had hoped for.

For the time being Yahoo is protected against the shortfall by a “revenue per search” guarantee signed by Microsoft that is due to expire next March.

Mr Thompson was also quizzed for more detail about his promise to make better use of the company’s “vast data”.

He explained that the firm would use cookies to personalise its news content.

He added that the data would also be used to help advertisers understand how visitors used the site and to request “almost real-time” analytics data.

This is the latest in a series of turnaround plans promised for the web portal.

The key will be in getting the search and banner advert revenues higher.

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