Wholesalers, Manufacturers and Retailers who deploy search engine marketing to competitive advantage take note: The U.S. is not the only one to change leaders. Yahoo! has a new CEO, Carol Bartz, who plans to restructure the search engine and online portal giant.
Online market watchers speculate that Yahoo! will go “back to its future” (be more search focused) … but as a leaner mega search engine, and focused on its digital media organizing strengths.
Yahoo Watchers Predict
Online commerce industry analysts are making educated guesses about where Yahoo’s new CEO will take the brand. Industry pundits include: E-Commerce Times (Renay San Miguel’s Is Bartz Planning a Leaner, More Search-Focused Yahoo?; Frost and Sullivan analyst Mikul Krishna; and Creative Strategies president Tim Bajarin. Here are the signs they saw:
· Back to Search. New CEO Bartz is identifying Yahoo’s core strengths as well as diversions from its core mission.
Strength: Search is Yahoo’s “critical crown jewel,” especially with search products designed for educational and corporate markets. Bartz is likely to focus that strength on mobile search … providing more advertising revenue opportunities.
Weakness: Google is already market dominant globally in search, so, as Frost and Sullivan analyst Krishna noted, “You just can’t keep focusing on that.” Krishna says it’s time for the new CEO to develop new strategies … built on existing strengths.
· Use User-Generated and Social Media Strengths. Yahoo! has invested in user- and social-friendly media sites, like 360 and Flickr. Analyst Krishna sees advertising revenue opportunities: “If you have properties where people are signing in, you have a good idea about demographics and then you can push advertising toward that.”
· Shed Some Media Distractions. Former CEO Terry Semel pushed Yahoo! into TV and music channels … as did Google and Miscrosoft MSN in the drive to become national networks of the digital world. But, according to Creative Strategies president Barjarin, only Google reached VIP status as a media channel on par with NBC, CBS and ABC. And it was done not by growing its own, but through Google acquisitions.
Other online industry analysts agree that the above misstep diluted Yahoo’s core strengths (in search, as a portal), wasting time and money.
· Tap the Portal Gene. In true back-to-the-future style, the new Yahoo! may leverage the old Yahoo! claim to digital fame: As organizer, custom sifter and accessible aggregator of an overwhelming amount of web “stuff.”
The One Word for this is: Portal. Information portal is where Yahoo! earned its stripes as a search engine. That content organizing strength is still pulsing strong in Yahoo’s corporate background.
Now we wait to see new leader Bartz’s next move.
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