Delivering the Customer to the Advertiser
These are some of the challenges that we faced. We’re going to start with advertisers then I'm going to go to users and then developers and wrap it up. But one of the really important trends that has happened, I'll give you some slides that show examples of these in a minute, is what advertisers started to want is to reach whatever consumer most wanted to buy their product. And it might be on Yahoo!, but it might be on Facebook or it might be on AOL or it might be on Google or maybe anywhere. So the advertiser doesn't care whether they're buying a set of Yahoo! properties. They're caring about reaching a demographic of chief household officer of women or men in a certain age group. What happened was these ad networks started emerging. And they include Ad.com and other things like that where an advertiser can go to one-stop-shopping. And the ad network then places their ad on any different publisher as opposed to our sales force which was just going out and selling Yahoo!. If we had organized around customers, if we've been organizing around, someone thinking about what our advertisers are doing, what are users are doing, we would have seen this earlier. We have leveraged ourselves into the number two ad network. We actually feel like we're in a position to transform the industry now but we were late in that. Because we were thinking about selling display on Yahoo! or selling search on Yahoo! and we weren't thinking about the whole. It also made it very difficult to buy across search and display. And that's true for the industry for the industry today. Google's really strong in search. They have their own search sales force. They really have nothing in display. Microsoft is not so great in either. Just the facts. So Microsoft is behind us in display and is number three in search. But in every one of these cases you can't go to one sales force. If your client - if you're General Motors and you want to buy internet ads, you got to work through multiple sales forces ...
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