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by Lucy Griffiths on 6th April 2010
Yahoo’s Publishing Network, the stricken search engine’s equivalent of Google AdSense, is to be closed at the end of this month. What does this mean for the future of Yahoo and why are they promoting Chitika as an alternative provider, not Microsoft?
Since Yahoo signed their search agreement with Microsoft, the once imperious search engine has been slowly off-loading various parts of its wider business. Last week it was announced that they would be dropping the Yahoo Publishing Network, a service for hosting targeted adverts on websites.
As you will no doubt be aware, online advertising generates billions of pounds worth of business each year. Google, with both AdWords and AdSense are by far the biggest earners. The Yahoo Publishing Network was an alternative system developed by Yahoo to rival AdSense, but it would be fair to say it has never enjoyed great popularity or reverence. However, why close it now?
Search partners Microsoft might also be inclined to question why they have recommended current users turn to Chitika for future ad hosting. Perhaps the marriage of convenience that they have agreed on is already on the rocks?
So why would they drop Yahoo Publishing Network? Well, it wasn’t hugely profitable, that is the bottom line. With Yahoo needing to downsize and refocus their business in the wake of their tie-in with Bing, they will no doubt be looking for departments that can be jettisoned (notably any that overlap). This move will surrender any foothold they have in the market and leaves them with a far narrower opportunity for income.
With all that said, the background reasoning is still very much under wraps. What is certain is that on the 30th April Yahoo Publishing Network will be no more. This means that if you have this coding on your site, it might well be time to consider updating it for one of the many advertising networks that still exist.
Will this be the end of Yahoo’s cuts, who knows? What we do know though is that Yahoo are more reliant than ever on their search partnership with Bing producing dividends. They have to take a slice out of Google and vastly improve their share of the global search engine advertising income.
Yahoo aren’t dead and buried just yet, but this could well be viewed as another nail in their coffin.