. . . Friday March 11, 2005

Sense and Sensibility

Yahoo is finally making like Google and developing an ad solution for smaller publishers:

Like Google’s service, Yahoo’s self-serve product will display text ads deemed relevant to the content of specific Web pages. Advertisers pay only when a reader clicks on their ad. Yahoo and publishers will split the fees.

Now all they need is the horse to put in front of the cart. In other words, they need a tool to allow small publishers to publish. Hmmm. I wonder how they could do this in a hurry?

This could get interesting for Yahoo as they have dual sales models. They have the content-related word buys like Google. But they also have their banner and other media sales to bigger advertisers. So imagine this. You sign up for their version of Adsense. Then your site becomes more popular. You move higher on the list of blogs in terms of traffic. Now Yahoo can bump you up to the next network.

But again, I don’t think this is the key opportunity for Yahoo. The key opportunity is for them to own a blogging platform and then to charge big media a premium to get in front of the mass of personal publishers.

Concentration is important!