Bowing to the intense pressure from cutthroat competitions Yahoo‘s third-quarter ad sales drops drastically compared to the corresponding period last year and hit the lower level of ad sales revenue. The present drop in the income has also forced Yahoo to lower its fourth quarter business outlook as well. The company however, gearing up itself to reverse the trend by decreasing the gap with the market leader Google on search monetization.
Yahoo is also planning aggressively to widen its lead in graphical advertising and likely to push the company into social media, online video and mobile. Yahoo witnessed some squeeze in ad spending since few clients have reduced ad spending however, it cannot be ascertain whether these clients have shifted to other company or refrained from much ad spending.
On the other hand, sluggishness in the auto and financial services might have also contributed to the recent fall in revenue in the third quarter.
In the meanwhile, Yahoo has announced that it is planning to invest in two Internet advertising companies to combat the recent financial situation. Moreover, Yahoo is also likely to acquire AdInterax that offers marketers an instrument to create multimedia advertisings. The financial details of the deal is yet unknown.
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