http://www.nytimes.com/2009/02/19/technology/companies/19yahoo.html?ref=business
Summary
“Yahoo Shows Search Ads With Images and Video” is an article written by Stephanie Clifford from the New York Times. The article is about yahoo introducing a new type of search advertising they created. Yahoo calls this new advertising offer “Rich Ads in Search.” This new type of search advertising integrates images and videos in paid listings compared to typically search advertising that show only text advertisements and links. Usually a marketer will use their online budget on search advertising and display adverting, a video or image on a banner/box on a web page. With this new type of search advertisement, Yahoo hopes to win back paid search advertising from Google, the current market leader. According to the research firm eMarketer, in 2004, Yahoo’s market shares in paid search advertisement fell 13.8% and in 2009, it fell 10.5%. Also, Google has doubled their market shares in paid search advertising in the same period of time. It market shares jumped from 32.8% in 2004 to 67.7% this year. Yahoo’s strength on internet advertisement has been display advertising on highly trafficked pages, but because of the recent recession many advertiser’s changed to search advertising, which gives measurable results anytime. Advertisers, who are willing to pay a huge price in order to develop their company commercials and/or logos will probably, be attracted to Yahoo’s new type of search advertisements.
Connection
There are two connection between the article, “Yahoo Shows Search Ads With Images and Videos” and chapter 15 of the accounting textbook. The first connection is that both sources are about users of financial statements and the second connection is that both sources talk about comparing financial data. The types of users of financial statements in the article are insiders (the owner, managers, and executive group of a company). The insiders in the articles are Yahoo and the companies that use paid advertisement. Yahoo uses its financial data to compare its revenue in paid search advertising to Google, the current market leader in paid search advertising. Many companies use financial data to compare to other companies to make decisions like putting more or less into paid advertisement.
Reflection
I think that comparing financial data is very important in business. It can be used to evaluate a company and see how it’s doing. Comparing financial data also helps companies that are not doing so well, be prepared mentally for the worst case scenario and be ready to take action when the time comes. I believe that Yahoo’s new type of search advertising will do well because no other company has this type of search advertising, but won’t be enough to make them market leader. I think that some companies will be willing to pay for this type of advertisement because it’s a new concept, but I don’t think that it will make a big difference. Personally, I don’t think this type of advertising will affect me at all, since I just ignore online ads and find them annoying.
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1 comment:
Sam, in my opinion this new way of advertising won't make much of a difference. Most people, like you and me, completely ignore the advertisements because they find them disruptive and annoying to their main researching objective. Google will always be better and pull out much bigger numbers than yahoo could, even with this new method of advertising. As the percentages show, Yahoo is on a slump while Google is succeeding even during the recession that is currently taking place. I believe that soon Yahoo will either sell itself or go through bankruptcy.
-Shayne C.
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