"Yahoo shares were off more than 9.5% in after-hours trading following its report that second-quarter revenue was lower than expected...the traffic acquisition costs were $453 million. Wall Street looking for at least $493 million...Those costs give investors a signal of the health of the Internet marketing business."
Yes and No. I certainly don't (need to) look to the health of an 800-pound portal to tell me how bright or healthy the future is, but rather as a barometer of the scaleability and potential of linear-based and one-dimensional transplantation of 30-second spots and traditional mentality to an otherwise non-traditional panacea.
On one hand, this marks the reality of demand exceeding supply (pull-factor i.e. rise of web), combined with the fact that there will be too many dollars looking for a new home and not enough room to accommodate (push-factor i.e. demise of traditional)
The Web picture used to be very simple: "display ads" versus "search". I haven't had a chance to sift through Yahoo!'s results, but I'd be curious to see the breakouts, growth areas, as well as a new category: social media (although there are significant business model questions to be answered here)
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