Internet giant Yahoo has reported losses for the second consecutive quarter as its ad rates were reported to have declined. In the last quarter of 2013, Yahoo has reported a 6 per cent decline in sales, bringing its revenue down to $1.266 billion. The company stated that prices for both online display ads and search ads declined in the fourth quarter.
In conversation with exchange4media, Vaasu S Gavarasana, Head - APAC Business Marketing, Yahoo Asia Pacific stated that this decline in online display as well as search ads rates is a market phenomenon. He further said, “Prices are set by demand and supply. Just like stock prices fluctuate, if a lot of advertisers are coming for the same inventory, then prices go up, and if less advertisers come, the rates will go down. It is a market phenomenon, which, in turn, affects the revenue.”
Yahoo had roped in former Google chief Marissa Mayer in 2012 and since then the company has been trying its best to get its mojo back. Yahoo’s acquisition of Tumblr has led to more users; however, Yahoo has been lagging behind Google and Facebook with respect to digital ad sales in the last few years.
Mayer has attempted product makeovers, made several acquisitions in the mobile space, apart from hiring senior-level people to boost various sub-sections on the site. “Since Marissa has joined, she has focused on getting top-notch talent and has enhanced several of our products. Marissa has given Yahoo a new lease of life. Before she came on board, we were a little lost. But we’re upbeat and looking ahead,” Gavarasana added.
Meanwhile, certain reports also suggest that the dip in sales has occurred after Yahoo’s COO Henrique De Castro was fired by Mayer.