Skip to Content
Uncategorized

Yahoo Battles Social Networks for Dollars

The Web continues its explosive growth, but old-school companies struggle with revenue
October 19, 2006

Yahoo’s CEO, Terry Semel, had some bad corporate news on Tuesday. The Internet giant saw a 37 percent drop in net income for the third quarter. While the company’s overall revenue numbers continue to climb, a softening ad market and a reevaluation of “stock-based compensation” caused the shortfall.

Needless to say, Semel wasn’t happy with the numbers–a sentiment that others in the Web business have echoed over the past several quarters, particularly as advertisers begin to court a younger audience on social-networking sites such as MySpace and Facebook. To combat the changing marketplace, companies–including Yahoo–have released new advertising tools that may help boost the market.

Yahoo announced that Project Panama, an ad-serving tool that will be integrated across Yahoo’s platform, will be ready for prime time early next year. Semel said that Yahoo will begin working with advertisers, helping them upgrade to the new system throughout the coming months.

However, Yahoo and its brethren may face a stiffer-than-expected fight from social-networking sites, which are beginning to expand their audience reach. TechWeb has a story about niche-oriented social-networking sites–such as those targeting single mothers–finding a wide audience base. If that happens, general platforms such as Yahoo may increasingly face competition for dollars from much smaller competitors, as well as from search giant Google.

In the end, though, a well-coordinated sales force may be able to trump the mom-and-pop-styled startups. That’s the thinking behind Factiva SalesWorks’ new software application, which overlays sales information on Google Earth, allowing organizations to plot out their strategies on a street-by-street basis.

Deep Dive

Uncategorized

Our best illustrations of 2022

Our artists’ thought-provoking, playful creations bring our stories to life, often saying more with an image than words ever could.

How CRISPR is making farmed animals bigger, stronger, and healthier

These gene-edited fish, pigs, and other animals could soon be on the menu.

The Download: the Saudi sci-fi megacity, and sleeping babies’ brains

This is today’s edition of The Download, our weekday newsletter that provides a daily dose of what’s going on in the world of technology. These exclusive satellite images show Saudi Arabia’s sci-fi megacity is well underway In early 2021, Crown Prince Mohammed bin Salman of Saudi Arabia announced The Line: a “civilizational revolution” that would house up…

10 Breakthrough Technologies 2023

Every year, we pick the 10 technologies that matter the most right now. We look for advances that will have a big impact on our lives and break down why they matter.

Stay connected

Illustration by Rose Wong

Get the latest updates from
MIT Technology Review

Discover special offers, top stories, upcoming events, and more.

Thank you for submitting your email!

Explore more newsletters

It looks like something went wrong.

We’re having trouble saving your preferences. Try refreshing this page and updating them one more time. If you continue to get this message, reach out to us at customer-service@technologyreview.com with a list of newsletters you’d like to receive.