Tuesday, February 21, 2006
InformationWeek | Search Engines | Yahoo's Challenge | February 20, 2006:
"Yahoo faces many challenges as it tries to turn vast sums of data it has on visitors into revenue. Another challenge: that little company called Google.
By Thomas Claburn - InformationWeek - Feb 20, 2006 12:02 AM
The world's in love with Google and search-based advertising. That leaves Yahoo, the Google of the '90s and still the most popular destination on the Web in terms of visitors, to prove there's a better way to deliver advertising. But to do that, Yahoo needs to translate the 10 terabytes of data a day its visitors create and turn that raw information into marketable insights.
Listen to Yahoo's chief data officer, Usama Fayyad, sell the story.
Yahoo's chief data officer Fayyad knows if you're about to buy a new car.
'Search advertising is great. I can match ads to intent,' Fayyad says. 'Well, guess what? When you're on the Yahoo network--whether it's travel, whether it's autos or researching universities--you're telling a lot more about yourself and your intent. And I can use that. I can turn that into a very powerful ad-matching machine, just like search is. In fact, in many cases, much more powerful than search. It's just that the market hasn't discovered it...
...It's an IT-intensive challenge. The 425 million users who visit Yahoo each month generate a data trail that amounts to 10 terabytes a day. And that's just usage data. It doesn't include E-mail or images...
...They're mining data collected in Yahoo's data centers, which are costly and, for the most part, hidden from view. There are 27 of them, more or less, around the world, filled with between 100,000 and 200,000 servers...
...Keeping costs in line as it battles the highly automated Google is a priority. It will take new services, features, and marketing to make Yahoo more competitive, enhance its image, change perceptions, and bring in more revenue...
...Yahoo also is more diversified than Google, with 12% of its revenue coming from user fees. As for advertising revenue, Marianne Wolk, a financial analyst for the Susquehanna Financial Group, estimates that 58% of Yahoo's ad revenue in 2005 came from search advertising, while 42% came from contextual ads designed to promote a brand. For Google, only 3% to 4% of its ad revenue came from advertising unrelated to search..."
"Yahoo faces many challenges as it tries to turn vast sums of data it has on visitors into revenue. Another challenge: that little company called Google.
By Thomas Claburn - InformationWeek - Feb 20, 2006 12:02 AM
The world's in love with Google and search-based advertising. That leaves Yahoo, the Google of the '90s and still the most popular destination on the Web in terms of visitors, to prove there's a better way to deliver advertising. But to do that, Yahoo needs to translate the 10 terabytes of data a day its visitors create and turn that raw information into marketable insights.
Listen to Yahoo's chief data officer, Usama Fayyad, sell the story.
Yahoo's chief data officer Fayyad knows if you're about to buy a new car.
'Search advertising is great. I can match ads to intent,' Fayyad says. 'Well, guess what? When you're on the Yahoo network--whether it's travel, whether it's autos or researching universities--you're telling a lot more about yourself and your intent. And I can use that. I can turn that into a very powerful ad-matching machine, just like search is. In fact, in many cases, much more powerful than search. It's just that the market hasn't discovered it...
...It's an IT-intensive challenge. The 425 million users who visit Yahoo each month generate a data trail that amounts to 10 terabytes a day. And that's just usage data. It doesn't include E-mail or images...
...They're mining data collected in Yahoo's data centers, which are costly and, for the most part, hidden from view. There are 27 of them, more or less, around the world, filled with between 100,000 and 200,000 servers...
...Keeping costs in line as it battles the highly automated Google is a priority. It will take new services, features, and marketing to make Yahoo more competitive, enhance its image, change perceptions, and bring in more revenue...
...Yahoo also is more diversified than Google, with 12% of its revenue coming from user fees. As for advertising revenue, Marianne Wolk, a financial analyst for the Susquehanna Financial Group, estimates that 58% of Yahoo's ad revenue in 2005 came from search advertising, while 42% came from contextual ads designed to promote a brand. For Google, only 3% to 4% of its ad revenue came from advertising unrelated to search..."
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