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Yahoo! mobile ads to pass Twitter in 2015
Is Marrisa Mayer’s plan starting to work?

MarrisaMayerWhen Marissa Mayer took over the CEO spot at Yahoo!, she publicly stated that “Yahoo will have to be a predominantly mobile company.”

“We’re late” she said, “We’re behind.”

Now, over two years later, there are signs that Yahoo! is making inroads in the mobile space.

According to new projections from eMarketer, in 2015 Yahoo! should overtake Twitter to become the third largest mobile advertising platform in the US.

Making Yahoo! mobile

Turning Yahoo! into a mobile focused company has not been easy. Mayer’s strategy has included buying 36 mobile startups in just the first two years!

These acquisitions were as much about acquiring mobile talent as they were for the acquired products themselves. When she arrived, very few people were working on mobile products at Yahoo; now Yahoo has hundreds of mobile developers.

All this effort and this sharp focus is starting to show some results. Two years ago Yahoo’s mobile user base was around 250 million people. Now the mobile user base is almost 450 million. And by the end of this year, the mobile base is expected to overtake and exceed the number of desktop Yahoo users.

Yahoo! in mobile advertising

In the world of mobile advertising, a couple of years ago Yahoo! was essentially nowhere, but recently has been growing. According to eMarketer, in 2015 Yahoo! should overtake Twitter, and become number 3 in terms of overall mobile ad revenue.

The number one and two spots are of course owned by Google and Facebook, and they are so far ahead of the rest that they are virtually unchallengeable in the near future. The following chart shows the gap between these two and the rest of the market.


Yahoo’s position in mobile search advertising is somewhat stronger than their overall position, with the company getting close to 5% of the search revenue.

On the other hand, Yahoo’s share of mobile display advertising is much smaller, at under 2% in 2014. However this is growing quickly, and should almost double to 3.6% by 2016.


The good news – strong overall market growth

The overriding good news of course is the strong projected growth in the total mobile advertising market.

As shown in the top table, eMarketer projects that the overall US mobile advertising market will grow 50% in 2015, from US$ 19 billion to over US$ 28 billion. Beyond that, they project a further 41% growth to over US$ 40 billion in 2016.

For more background and news about Marissa Mayer and Yahoo’s approach to mobile, take a look at this article in WIRED.

21.12.2014    Tags: , ,
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