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Article

Title: Yahoo Faces Pressure From Rivals In Its Search for Online Ad Dollars

Author: Delaney, Kevin J Article Type: Product Analysis
Source: Wall Street Journal, v248 n92 pA1(2) Publication Date: Oct 18, 2006
  ISSN: 0193-2241
  Illustrations: Graphs
URL of Publication: http://www.wsj.com

News Corp.'s MySpace social networking site saw 170 percent more unique U.S. users in September as compared with a year earlier, but Google's users rose only 25 percent, says research company NetRatings. Yahoo! is still the top U.S. brand on the web based on number, as it had 106 million users in September, but usership rose was only 6 percent higher than in the previous year at the same time. MySpace had 47 million users, and Google had 99 million. The numbers are the reason that Yahoo! is under pressure from competitors for online ad dollars. Terry Semel, commenting on Yahoo!'s recent 38 percent drop in third-quarter profit and its lowering of its fourth-quarter sales projection, says there are more alternatives to advertising. However, the reduced third-quarter net income mostly resulted from changes in accounting for stock options from last year. Mr. Semel said new alternatives to Yahoo! include ads that cost less and may not get premium placement on a site or run at a specific times. Yahoo!'s executives said in a conference call with analysts that Yahoo!'s premium ad offerings are very well protected and also said Yahoo! is expanding efforts to obtain revenue from its own non-premium, low-priced ad placements.

Special Features: Graphs

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MySpace Inc Yahoo! Inc

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MySpace

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