Yahoo: Slipping and Dipping

January 11, 2009

I have deep skepticism about third party data. Nevertheless, when reports about Web site traffic and online advertising share appear, the data get snapped up the way Tess goes for a dropped chicken wing. Silicon Alley Insider’s “Yahoo’s Share of All Search Advertisers Drops 36% in QY (YHOO)” is worth reading. You can find the story and the scary red line here. Let’s assume the data are accurate. Bad news for Yahoo. Let’s assume the data are off a tad, say, down 18 percent in Q4. Slightly less bad news. If the Yahooligans continue to slip, the GOOG benefits. Yahoo started as a directory, became a portal, and then floundered. Like a person overboard in the Arctic waters off Nordkaap, even a strong swimmer succumbs. A weak swimmer, well, not much chance. Yahoo is now in the Arctic waters.

Stephen Arnold, January 11, 2009

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