Does Yahoo even know how to be a modern media company? →

Mathew Ingram:

[New Yahoo CEO of the month Ross] Levinsohn seems to think that having a huge number of eyeballs aggregated around Yahoo’s various properties is a sign of success, but that’s arguably not what media companies of any kind ought to be concentrating on right now. Increasingly, advertisers don’t want hundreds of millions of eyeballs to show banner ads to any more — they want targeted reach and they want mobile and they want social, and there aren’t a lot of signs that Yahoo has what they need.

Ingram makes an interesting observation: AOL and Yahoo still both see media as a game “where the player with the most eyeballs wins,” which completely ignores what makes Facebook and Google as good as they are at what they do (and as scary as they are): advertising based on user profiling. Facebook may have a billion users, but what they’re selling to advertisers isn’t their aggregated user base—it’s the ability to target exactly what those users (presumably) want.

  1. chipotle posted this