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Tuesday, July 26, 2011

Yahoo Records Dip In Advertising Sales: Trouble On The Horizon?

Yahoo lost traction years ago in the battle for search dominance, but they’ve been quietly eking out a living in their corner of the web—until now. yahoo weak sales

Yahoo has recorded losses for the second quarter running, reporting $1.08bn in revenue for the 3 months ending June 2011.According to Yahoo, that’s a 4.6% decline on last year’s revenues. The company is citing reduced advertiser spending as the major cause of the dip.

Of course Yahoo won’t openly say that eroding market share is a contributor because that would make Google and Facebook all the merrier. The truth is though, between lower consumer spending, advertiser migration (especially to social media platforms), Yahoo has taken a big hit. One also has to bear in mind that there was merger between Microsoft’s, Bing and Yahoo not too long ago. That consolidation, obviously didn’t transform the market has everyone expected.

Things aren’t looking too bad for Yahoo though, because even with only $1.08bn in revenue, the company did manage to make a profit. And that’s a lot more than some of the bigger tech companies can say. Those profits should now be guarded and channelled properly because if sales continue to decline, Yahoo will most certainly move from the black into the pits of the red.

Do you think Yahoo can keep up with the likes of Facebook and Google? Watch the video below to see what the analysts are saying.


View the original article here

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