Vijay Anand | The Startup Guy.

Posts Tagged ‘radio

This is a continuation to a Post that I had written Earlier.

“Yahoo could emerge with an edge, if they leapfrog into other verticals following the same web-based advertisement network.”

For a company which has entrenched itself in the media space, managing advertisements networks i probably the holy grail. I wouldnt recommend that Yahoo give up that leverage. Instead of going head on with Google and losing out on that battle, all they need to do is leverage that asset in a different vertical.

I wrote about perhaps using advertising networks, especially multimedia (audio/video) ads in Radio and television networks. One could argue that the ad server requirements, the infrastructure requirement and cost of operations would significantly vary because of the medium. I’d agree to some extent. But there is also a way to deploy the already existing asset, as-is, into different verticals. Read on.

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So I know that there are a gazillion guys out there in the whole wide world, who have given “open” advise to Yahoo as to what they should do. I am neither an expert, nor am vested into the company to have such generosity towards them 🙂

A friend of mine and I, over some conversations were discussing about some of the bigger brands that we see around us and something along the topics of Return on Equity. Not sure if you are aware of, but Microsoft has a 52% return on equity. Yahoo has roughly about 7% and falling drastically and Google has one which stands at around 26% – and growing steadily. Whatever you may say, Microsoft has played this game with a whole new set of balls and one most people simply won’t understand. And if you ask me, they are a much better company in terms of strategy and products compared to Google, anyday.

Yahoo could emerge with an edge, if they leapfrog into other verticals following the same web-based advertisement network.

Yahoo could emerge with an edge, if they leapfrog into other verticals following the same web-based advertisement network.

But that’s not the focus of this post.

The conversation was that, if a company has Advertisement as its core strength and has built a competence in it, then its going to be very hard for the company to drop that and adapt the advertising network of its partner/rival. Well, for the case of survival they might, but since they do have the core competence, the resources and the minds that can think in that direction, what could they possibly do, was the question.

Fact: Yahoo makes most of its money via advertisement, and that too on banner ads.

This becomes an issue when you have so much internet portals and properties, but just simply have to fill them with advertisements in order to make them viable. And in this day and age of APIs, nobody might even come visit the site to get hit by the advertisement. You are forced to rethink in terms of strategically placing the advertisement within the content, but thats a very very hard thing.

My Take: I think this is probably the same route as making fiber out of rocks. There might be some way to do it, but whatever it is, its one rare, long process.

I’d say, flip the coin, and lets look out to the horizon. Go after other streams, television and Radio… to be precise.

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