Content Swamps Yahoo: How Can Online Services Earn More Ad Revenue?

  • Yahoo and other content aggregators are finding that the more content they have, the less value it has. Ad rates for Yahoo and AOL have plummeted. Meanwhile, services that find interesting content like Google are doing exceeding well.
  • Moreover, advertisers have a wider range of competitors to reach their target markets. And they are increasingly working with advertising exchanges that buy ad space inexpensively across multiple properties.
  • Even smaller publishers like Salon and Slate are not consistently profitable.
  • “It’s a simple rule of any market,” reports The Wall Street Journal. “The more information that is created, the more the value is reduced. And despite attempts to woo spending with bigger, bolder and more targeted ads, services that help consumers navigate that content, namely search, remain the big money makers online.”
  • “Most people make money pointing to content, not creating, curating or collecting content,” suggests Rishad Tobaccowala, chief strategy and innovation officer at Vivaki, the digital-media unit of Publicis Groupe SA.