Fortune on Yahoo!

july 25, 2005

Fortune has a good article on Yahoo! and their positioning as an Internet media company -- and not just an Internet search engine like some other company. The article has a lot of numbers, but has some striking insight. For instance, they point out how Yahoo! has actual users and how this allows for Yahoo! to figure out patterns about each user. This allows Yahoo! to help advertisers better target the audience they are seeking. This is as opposed to Google who has only recently started getting people to start registering as users for their mail and news services. Yahoo! is more than a search engine or portal, with all of the services that it offers, users stay on the Yahoo! network more than on Google's -- think about the different usage patterns of how you use each. You go to Yahoo! News for instance and you stay around to read news articles which allows Yahoo! to show you more ads. You go to Google and you type in what you are searching for, you get a list of things and then off you go to someone else's site. That's not very attractive to advertisers. The article also points out the one weakness of Yahoo!. The more powerful Yahoo! becomes as an Internet media giant, the more that the analog media giants will shun Yahoo!. Because Yahoo! is mostly an aggregator of content for users, if the analog media giants (like TV or newspapers) start to pull out their content, then it will mean less content for Yahoo! users. Yahoo! has hired an executive to start working out relationships to help smooth things over with the analog media giants though. It's a long, but very interesting article.