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ABC’s of SEO – Y – The Rise & Fall of Yahoo

Digital marketers and SEO’s respectively should take heed that for the eighth month in a row, Yahoo search has taken a dip in traffic. Subsiding in the shadow of Google, Yahoo a once revered and respected search engine platform, ironically is searching for a strategy to save a company that has been active since the dawn of internet search.

Disorder began with the dismissal of Yahoo CEO Carol Bartz in September 2011, and with the appointment of new CEO Scott Thompson in early 2012 it became apparent that the company was in trouble.

the rise and fall of yahoo

Chaos within the company was heightened at the start of April with the announcement of 2,000 redundancies. Cuts were made in the search sector with on-going implementation of Bing search results being incorporated and the merger of Microsoft services meaning less need for internal search divisions. Although there has been some notable improvements since Bing have been serving results it’s still a downturn in traffic that is flagging a warning signal. Yahoo is now relying on Bing who in principle are still classed as competitors to deliver search revenue and help bring traffic to the site.

The whole rise and fall story comes as sad news; Yahoo was once ruler of the Digital Search Market, it was in essence a Google of its day. In its heyday of the dot-com boom Yahoo had even approached Google offering 3 billion for the then infant search firm. The crux of its demise is partly due to its mishandling of paid search advertising, not identifying the advantages early on; Google took advantage, claiming a majority of control in paid search an asset that generates about 29 billion a year for its revenue.

It was also the lack of venture and evolution that saw the crown pinched from the king of search, Google kept ahead of the game, updates to search algorithms returned much more accurate results. In addition recognising the prominence of social media Google endeavoured to invest in companies related to social networking tools where Yahoo fell short. In 2006 Yahoo had tried to acquire YouTube, however Google swooped in and snatched the online video platform. Yahoo had also failed to see the importance of developing apps for mobile devices another market that Google capitalised on and has since seen a substantial growth.

Yahoo have certainly missed a lot of opportunities for growth and recent  job losses point to difficult times for the business, leaving us thinking – what future lies ahead for Yahoo?

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2 Comments
  • Darren Azzopardi on May 28, 2012

    Yahoo! originally won because it was more or less first on the ‘search engine’ scene with money to back it.

    They’re not adapting fast enough. I still think Yahoo! can turn it around, it’s not impossible for brands to structurally rethink where they want to go, they just have to have a core vaule; Google is the search engine, Bing is coming across as the semantic engine and Yahoo! erm…it does bits and bobs..

  • Arpita on June 7, 2012

    Hi James,
    Thanks for this nice post.
    Yahoo is trying to come with the pace of Google and Bing as their role as search engine.Yahoo offers a paid inclusion program while online search.Thus it makes profit when online users clicks on high PR websites.

    Thanks again
    Regards

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