Yahoo’s recent sale to Verizon — and its potential merger with fellow Verizon property AOL — has created hope once more for a Yahoo comeback. But digital ad revenue will need to be a point of emphasis if the web company is going to regain its market standing as a top player compared to the likes of Google and Facebook.
Yahoo’s market share of U.S. digital advertising revenue fell from 7.2 percent in 2013 to 4.6 percent just two years later, according to data from eMarketer.
“We are going to aggressively pursue being the number one news provider in the world,” said Armstrong.
Achieving that goal would go a long way towards regaining Yahoo’s lost market share of ad revenue.
In addition to bringing in new users, Yahoo will be looking to better capitalize on its already sizable user base. Yahoo is the fourth most visited website in the world, according to web traffic data companies Alexa Internet and SimilarWeb.
During the company’s most recent earnings call, Yahoo CEO Marissa Mayer discussed Yahoo’s push to make mobile-based platforms — such as Tumblr — more attractive to advertisers as more and more users switch to mobile devices.
“I believe it’s nearing 90% of our daily active users are now engaging with the application on their phone, in addition to desktop,” said Mayer.
Verizon’s acquisition of Yahoo and a potential merger with AOL will give the web company another chance to make the leap to the become an internet titan like Google and Facebook. The only question now is: Can they capitalize?