Yahoo Wants Mobile Ads, Not The OS

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Now that the Google Phone hype has proven an operating system play for mobile devices, Yahoo’s strategy of grabbing advertisers for the handset could be a competitive edge.

Yahoo will be pleased with grabbing the brand advertisers who can pay handsomely for mobile display ads, while Google tweaks its phone software and its alliance of partners developing for it.

Reuters said Yahoo’s Marco Boerries thinks Google is being distracted by technology instead of focusing on the advertising that provides virtually all of their revenue.

Meanwhile, Yahoo has been able to close deals with several hardware makers to place its oneSearch product on handsets. They signed up Telefonica and its 100 million-plus subscribers, a big win for oneSearch.

Yahoo received praise for its strategy from RBC Capital Markets analyst Jordan Rohan, who suggested to Reuters the strategy of focusing on distribution deals looks like the right approach.

In contrast, Boerries believes Google could run into issues when negotiating revenue sharing with carriers who may end up with a Google-powered phone in their lineups.

That point falls in with our line of thinking about Google, and the way its mobile product can matter if Google runs the network, something they seem to have the resources to accomplish. Right now, Yahoo has some momentum on the mobile side, even if it isn’t accompanied by the same hype as Google’s work.

Yahoo Wants Mobile Ads, Not The OS
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