Yahoo’s Biggest Problem – Less Clicks or Failed Facebook Imitation?

Ritesh Sarvaiya

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21 Feb

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Yahoo CEO Marissa Mayer - Troubled Over Company's Downfall

Yahoo CEO Marissa Mayer – Troubled Over Company’s Downfall

Yahoo is going through tough times. Year by year, the once famous internet mogul, is losing revenue to Google, and many other rival company campaigns. During an interview at the Goldman Sachs Technology & Internet Conference, Yahoo’s CEO – Marissa Mayer admitted to facing several problems altogether.

Put it simply, Yahoo is in the middle of some major crisis. Mostly it is lack of clicks and a failure to retain visitors, who somehow “end” up at Yahoo’s front page. CEO Marissa Mayer also hinted that Yahoo has not been getting enough impressions lately.

“Impressions” is the number of times when an ad appears on any website or one of its specific pages. Impressions are normally accompanied by online ads. When someone clicks those Ads, those clicks individually generate ad dollars. The bottom line is that these ad dollars help internet businesses survive.

Entrepreneurs rely on these ad based clicks because a huge chunk of their business relies on them. Why talk about someone else? We created ‘The National’ in August 2012. It has been a long march. Among many income streams, a small portion of our revenue comes through online ads placed at this website.

Anyway, coming back to Yahoo’s demise, the 37 year old CEO is struggling to keep the company alive. Within her first 3 months of empowerment, Marissa Mayer fired 2,000 Yahoo employees to cut down on company’s expenses. However, laying off Yahoo employees is not the ultimate solution to the problem.

During the conference, Marissa said, “A lot of my time has to be focused on products, on delighting our users, on inspiring them.” Yahoo is still lacking tactics to reduce its bounce rate. At the moment, I think that one of the primary techniques of increasing readership percentile is to publish news.

Other than that, I don’t see a lot of changes at Yahoo. Particularly speaking, Yahoo News section is perhaps the only area where most users hang out. The news are not always good; they are crappy or don’t really qualify as “news”.

Yahoo CEO- Marissa Mayer Talks to NBC:

In related news, Marissa Mayer spoke with NBC correspondent in “Today” show last Wednesday. It was the same old story about how the once famous internet company is not faring well these days. The fact of the matter is that investors are really concerned about Yahoo’s future.

Marissa is thinking of giving a visual overhaul to Yahoo. They are considering “imitating” Facebook’s look and feel to properly synch news feed for the readers. The CEO is saying that it is their move to help Yahoo “users” embrace the modern paradigms of the search engine. “One thing that I really like is this very personalized newsfeed. It is infinite and you can go on scrolling forever.”

This endless newsfeed concept is not limited to Facebook only. Apparently, Twitter is also using the endless newsfeed strategy. But Yahoo integrating this thing does not make sense. The truth is that people don’t like Yahoo.Com as much as they used to. Yahoo cannot make people “like” or bookmark its pages.

Even when Marissa Mayer is talking about a visual overhaul, new application development for smartphone users and everything; Yahoo is not going to improve. The company’s revenue has been declining on yearly basis. Last year Yahoo made $5 billion. In 2010, it was $6.3 billion. Go a few years back and the statistics will be completely different.

Do you think that Yahoo still has what it takes to be successful? Is Yahoo going to beat Google? Let us know through the comments section.

This entry was posted on Thursday, February 21st, 2013 at 9:55 AM and is filed under National News, Search Engines. You can follow any responses to this entry through the RSS 2.0 feed.

Ritesh Sarvaiya

About Ritesh Sarvaiya

The boss of 'The National', Ritesh is the man behind our masked plots, minion army and claims to take the online world to ourselves. The malicious and powerful Chief Executive Officer strikes fear into the hearts of his foes by ruling with an iron fist, and playing with his 2 year old son in spare time.

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