Yahoo! reported revenues yesterday of $1.33 billion, $40 million below analysts expectations. It also is cutting it’s year end revenue targets, but the bigger news is that it’s cutting it’s workforce by 1,500 by the end of the year, or 10% of it’s employees.
With so much bad news coming from Yahoo, I would think they’d be trying to focus on any good news they have. The lack of saying any more about their deal with Google besides saying that he wans to get it going “as soon as possible” leads me to believe that it isn’t going too well for them.
The biggest problems I’ve seen with Yahoo, from an advertiser’s perspective, is their quality. They’re more strict with their advertisers on some aspects such as their minimum bids and their keyword policies while they don’t seem to care that their search partners are providing incosistant and usually negative traffic quality. They’ve increased min bids on high performing keywords to the point where they become unprofitable, they’re inconsistant with how they review landing pages for keywords and their overall quality has gone down hill.
I’m still rooting for Yahoo to do something with the market share they have left. I’d love to add more spend to my campaigns and decrease my overall percentage spent on Google. Yet, until they’re able to make better improvements, they’ll likely continue to bleed. I also know that there are going to be at least 1500 more people mad that Yahoo didn’t take Microsoft’s original offer.
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