Hand It To Jerry (Or Place His Head On A Platter)

Writing by Nick Stamoulis on Thursday, 20 of March , 2008 at 8:33 am

(Source) Yahoo’s investors have 8.8 billion reasons to stick it out with the company for a couple more years, as CEO Jerry Yang projected that as the company’s 2010 revenue figure.

You’ve got to hand it to Jerry Yang. When the going gets tough, he gets going and crunching the numbers and this time he’s saying Yahoo! will profit. Big time!

I wouldn’t be surprised if he was right. Display advertising is big and seems to be getting bigger just like Search Engine Optimization. Unlike pay-per-click advertising, display advertising isn’t so much based on keywords as it is based on big flashy images. And most people don’t click display ads. But who cares about that? If the company makes money selling them then that’s all that matters.

Of course, people go to search engines to search. At least, that’s Google’s philosophy. And Google would know, right?

But Yahoo! has figured out that search isn’t everything. It caters to a different type of user. The type of user that is more likely to play a game or two and waste some time then click on a display ad to see where it goes. The question is, can Yahoo! turn its ship around and navigate toward more profitable waters? I’m hoping it can.

Category: Search Engines

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