Can Yahoo Catch Google Essay

328 WordsMar 15, 20112 Pages
Can Yahoo Catch Google? This article talks about Google taking nearly all of the online search-advertisements, and how Yahoo has steadily lost a percentage of them in each of the past few years. Yahoo still controls the video/audio ad market, although it is by a very slim margin. They control 16.2% of those ads, while Facebook holds 13.6%, and Google 13.4%. That may seem like Yahoo has an advantage in this department, but it saw a decline in percentage from 2009 to 2010, while both Google and Facebook increased theirs tremendously. This could seem like a problem for Yahoo, but they are trying to be optimistic, saying that there are a lot of businesses who left the online ad-market after ’08, but will soon be returning with the economy seemingly picking itself back up. They may not control all of the market, but even a small to medium portion can provide a pretty good living. This applies to what we spoke about in class in terms of supply and demand. In the midst of the recession, many companies realized they had to cut back their budgets, and did so by pulling their online ad campaigns. Now that the recession ended and the economy is going again, companies are putting money back into online advertising. Many of them have gone with Facebook or Google, but they cannot all advertise on those sites, so as the economy picks back up, while Yahoo may lose ads in terms of percentages, they may actually be selling more ad space because there are just more consumers now. This also applies to what you briefly mentioned in class about gaining back money or stock market points and not yet breaking even. Yahoo may have gone down to, for example, 50% of what it once was, and now recovered back to 75%. While it saw a 150% growth, it is still down 25% from where it initially

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