Google signalled it’s intention to increase it’s impact in the traditional display advertising display network with the announcement that it is making it easier to format ads across its network. Known as “Rich Media Dynamic Ads”, the new tool will allow advertisers to update “multiple ad spots instantaneously”. This comes on the back of Google improving the display functionality of display ads that are Adwords driven. Adsense revenues are responsible for approximately one third of Google’s income (£1.15bn in Q3 2008), and are an integral part of the company’s growth strategy, particularly as users consumption of content (and user generated content) increases.
Meanwhile it was also recently announced that Yahoo would be closing it’s content match functionality within it’s search platform. Instead Yahoo is encouraging advertisers to use the company’s YDR (Yahoo Direct Response) as it has “more flexibility”. Moving display functionality away from the search platform into a traditional media buying format draws a clear distinction between the two marketing channels. This comes at a time when Yahoo really should be looking to integrate them closer – as Google have with their new and improved display ad builder. Yahoo is not helped by the poor usability of Panama (formerly Overture) which is probably partially responsible for this move. I imagine advertiser uptake and optimisation of content match was particularly low.
However the mere fact that Adsense makes up a third of Google revenues, a point made succinctly by Chris Lake at E-consultancy, surely shows that Yahoo should be trying to integrate search and display- not separate them. As one anon ad executive said on a cnet post, quoted here,
“No one has properly integrated their platforms of search and display advertising. Even though Yahoo has integrated those ad sales teams, no one is treating it as a ’solution,’”
Technology or (lack of it) appears to be what is holding Yahoo back. Adsense is a monopoly with Google dictating the rules of engagement to publishers. Google have made it very easy for virtually anyone who has a website to monetise the incoming traffic but it is done on Google terms. With content and particularly user generated content becoming of greater importance both in terms of user behaviour and SEO, their is a massive opportunity for Yahoo here.
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