It’s quite possible that Yahoo will continue on its current path, but when I say that I’m referring to the plan that’s currently in place to improve the company. There are signs that this could work. One of the points that got lost in all the bad news about Yahoo was that Panama is starting to find its stride. Susan Decker said that it would begin delivering double-digit increases in revenue for every search in this quarter. That’s a little ahead of schedule. Unfortunately, any good feelings it might have inspired were cancelled out by news that advertising on the Yahoo portal was less than expected, leading to a decrease in revenue.
It’s also worth noting that Yahoo acquired collegiate sports site Rivals.com just one day after Terry Semel stepped down. Yahoo is currently the number two destination for sports online, behind ESPN.com; this move bolstered its position. It also showed that Yahoo is still committed to its media group and its content distribution strategy. This actually plays to one of the company’s strengths, according to Jupiter Research market analyst Barry Parr. “They understand how to license other people’s content, and they have been really good at that,” he explained. “Where they have stumbled is when they have tried to become original content producers.”
Everyone seems to love Yahoo’s media sites – everyone over a certain age at least. Some observers have noted the search engine’s older demographic as if it were a problem; personally, I see it as a potential strength, due to the sheer size of the older population and the fact that they’re among the fastest growing demographic getting online (Baby Boomers, anyone?). Either way, Rivals.com – and, I anticipate, future purchases – will help Yahoo to redress the balance as far as attracting a younger crowd and making sure it is still relevant in the future.
Then there’s the partnership agreement that Yahoo made with six major mobile operators across Asia. The 100 million users of those mobile operators will be treated to Yahoo! oneSearch, easily accessing news, Web images, financial information, weather conditions, Flickr and web and mobile web sites. Yahoo seems to be reaching out to more users on more platforms than ever before.
And perhaps that’s the key to Yahoo’s future, and the truth behind Jerry Yang’s appointment to the CEO position. As Gord Hotchkiss notes, “Jerry Yang is recognized as a champion for the user experience on Yahoo and, in stepping back into the CEO’s old role, seems to signal a return to the fundamental principle of the user’s importance.” Hotchkiss thinks it’s too little, too late; I’m not sure I agree with his assessment. Either way, time will tell. One thing you can say for certain: if this doesn’t work, Yahoo still has other options for its future.
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