May 18, 2006

Yahoo! still left behind on ads

by Brian Turner

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In the face of investor concerns and falling stock prices, Yahoo! has mobilised itself to re-assure them with the following message:

“We’re still going really slowly with ads, and plan to let Google dominate the advertising market for another year at least.”

Of course, that’s simply paraphrasing Yahoo!’s press release - but the message is essentially the same.

While Google continues to dominate the burgeoning search advertising market, Yahoo! has left itself over-stretched and unable to focus on revenue generation in one of the most lucrative advertising markets online.

While Google stocks are likely over-valued in the long-term, the fact that no-one is yet able to directly rival Google on their main revenue generation, can only be continued good news for Google and Google investors alike.

Meanwhile, Yahoo! continues to get excited about playing catch-up, even when done very slowly.

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Story link: Yahoo! still left behind on ads

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