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Technology Stocks : Altaba Inc. (formerly Yahoo)
AABA 19.630.0%Nov 6 4:00 PM EST

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To: Conan who wrote (26452)3/7/2001 5:48:27 PM
From: Doug Fowler  Read Replies (4) of 27307
 
This is NOT just a matter of a weak economy.

This is PRIMARILY a matter of companies that WERE paying big bucks to advertise with Yahoo now realizing they were essentially throwing their money away.

Banner ads are worth next to nothing, and the cost for them is approaching next to nothing. They have ALWAYS been worth next to nothing - the difference now is that Yahoo's former advertisers are finally figuring this out.

Yahoo needs a new revenue model, and it amazes me that they have STILL not done some very obvious things that could contribute greatly to their revenue and to their bottom line.

The most obvious thing they could do is adopt the GOTO model for paid search listing placement.

Yahoo is still the most popular search engine and yet they are taking this "wimp" view that they cannot charge for placement, or they will lose their objectivity, and hence their relevance.

Well, there really isn't any objectivity there to begin with.

It is quite easy to argue that the more somebody is willing to pay for higher placement for a search term, the more likely their term is to be relevant to the search.

The market is very good at getting this to balance.

GOTO.COM just reported revenues of about $50M for their latest quarter,and it is ALL from paid search listings. Yahoo should EASILY be able to match this by setting up a similar system.

Or, Yahoo should buy GOTO.COM (it is pretty cheap) and incorporate this into their search listings. A quick $50M addition to quarterly revenue is significant, especially considering that Yahoo is only generating $175M for their current quarter.

Yahoo - wake up and stop giving away so much. Somebody who uses your site all day and never buys anything is ABSOLUTELY NOT a customer - they are a resource hog...
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