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The headline story of Yahoo’s quarterly review is undoubtedly the 15 per cent drop in search revenue. A general trend away from paid search has hit the major engines hard, but seemingly Yahoo are suffering more than most.
The loss of revenue in paid search was attributed to “fewer click-throughs and fewer buyer intents” by Yahoo chief executive Carol Bartz in a report by the Financial Times. She was quick too to brush off claims that search volume may also be suffering, although clearly the dramatic drop will have raised some questions by those within the company and others with a vested interest.
Seemingly the costly rebranding of Yahoo (mentioned in yesterday’s post – Yahoo Readying New Dynamic Front Page) can’t come soon enough for some. With Bartz also praising the progress made by Microsoft and their development of Bing, perhaps that is the most significant indication yet that any joint venture between the two parties in the future might favour a Microsoft search engine.
In all though this will probably be seen as bad new by Yahoo, but by no means the worst. They’ve struggled in recent times to compete with Google, whilst the emergence of Bing last quarter could well have rocked their ship more than it ultimately has done. A lot rests on the new front page’s success and the outcome of negotiations with Microsoft over their search deal; but Yahoo are still far from being down and out.