1,000 Yahoo Layoffs and 4 Key Yahoo Trends for CEOs


Yahoo Panama posted a 20 percent improvement in RPS (Revenue Per Search) in Q4, following three consecutive revenue growth quarters. “Yahoo O&O” – owned and operated — was the new search buzzword tossed around during the conference call. More good news: search revenue grew by approximately 30 percent. International search for Yahoo properties showed RPS gains accelerating into the high teens.

Improving the quality of traffic with domain controls and ad quality filtering promise to improve lead quality and advertiser ROI over time. The cleanup, though, limited Yahoo’s revenue growth in Q4. Yahoo’s stock price dropped below $20 again.

Search marketers, agency owners, CEOs, and CMOs need to know whether Yahoo CTR improved due to Panama; how the recession will affect search and display advertising; and how much Yahoo share of total searches improved.

4 Yahoo Q4 Trends All CMOs Need to Know

1. Search marketers can count on improved click-through rates from Yahoo searchers clicking on paid search (PPC) ads.

2. Search continues to be strong and as close to “recession-proof” as any form of online advertising. Advertisers can expect high ROI unless the recession significantly reduces commercial searches.

3. Yahoo share of searches continue to increase, reassuring major brands and search marketers that the Yahoo spotlight will continue to shine on search.

4. Search marketing agencies who specialize in one vertical would be well-advised to diversify their client portfolio, with weakness in housing, financial services, travel, and to a lesser extent retail.

The bad news: 1,000 Yahoo employees will be laid off, a move that may streamline the company but won’t boost stock price or improve client service for search marketers, CMOs, and agencies. With higher revenue per employee than competitors, Yahoo executives may not even see productivity gains.

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