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What: Advertisers will spend more than 10 billion in digital video in 1, representing an 85% increase from 2 years ago, based on“Digital Content NewFronts: Video Ad Spend Study,” a study conducted by Advertiser Perceptions on behalf of the Interactive Advertising Bureau (IAB).
Why it matters: 68% of those marketers and agency executives believe that original digital video will become as important as original TV programming in the next 3 to 5 years.

Advertisers and media buyers have made an impressive 114 % increase in investments in original digital video programming over the past two years, according to the third annual “Digital Content NewFronts: Video Ad Spend Study” conducted by Advertiser Perceptions on behalf of the Interactive Advertising Bureau (IAB).

Reinforcing the critical role the Digital Content NewFronts has played in media buying decisions, eight out of 10 respondents said that their attendance at the 2015 NewFronts resulted in increased spending on original digital video content in the 12 months that followed, and/or motivated them to increase original digital video budgets overall.

Buyers who primarily focus on TV were more likely to commit those extra dollars at the NewFronts (64% vs. 42%), while digital-focused buyers were more likely to spend them throughout the year (49% vs. 41%).

Buyers who primarily focus on TV were more likely to commit those extra dollars at the NewFronts, while digital-focused buyers were more likely to spend them throughout the year.

Nearly three-quarters (71%) of those surveyed also said that they plan to attend the 2016 NewFronts, expecting to spend more than a third of their overall digital video budgets for the year at the annual marketplace.

The study further revealed that more than two-thirds of marketers and agency executives (68%) believe that original digital video will become as important as original TV programming in the next 3 to 5 years. In order to close the gap between digital video and TV programming, both groups want to buy digital video that reaches target audiences in high-quality programming and delivers more concrete ROI metrics.

68% of marketers and agency executives believe that original digital video will become as important as original TV programming in the next 3 to 5 years

While the majority of buyers surveyed plans to spend more overall on all digital video (63%) and mobile video (62%), original digital video content has grown in importance, now accounting for 44% of a typical digital video budget, up from 38% two years ago.

Native advertising has also established a foothold in dollars spent on original digital video, accounting for one-third (32%) of that investment.

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Ongoing Strong Growth for Digital Video

  • Advertisers are spending on average more than US$10 million annually on Digital Video, representing an 85% increase from 2 years ago, based on a survey of 360 advertisers and marketing professionals.
  • Video represents an increasing share of Digital/Mobile Ad Spending, with growth driven by a substantial increase in Mobile Video allocations.
  • Robust spend optimism (plans to invest more in next 12 months) for both Digital and Mobile Video; while most are expecting to maintain current TV spend levels.
  • Cross-Platform spending (TV + Online Video) seeing continued growth in 2016 – driven by TV-Primary Buyers, 82% of whom plan to increase crossplatform spending.
  • Cross-Platform spending (TV + Online Video) seeing continued growth in 2016 – driven by TV-Primary Buyers, 82% of whom plan to increase crossplatform spending.
  • Original Digital Video Content Spending & Trends – Robust growth: Ad spending on original digital programming has more than doubled since 2014. Nearly one-third of ODV dollars are going to Native advertising opportunities.

In addition, Yahoo partnered with Nielsen & Hunter Qualitative to collect insights related to different variables within the pre-roll and native video ad formats. The study suggests the greatest growth in digital video consumption is coming on mobile devices, while traditional TV viewing time has declined slightly.

Screen-Shot-2016-05-02-at-9.24.36-AM-800x440

 

The study further suggests cross-platform digital video ads are more effective for brands than PC or mobile-only video campaigns.

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Yahoo’s video creative best practices:

  • Larger logos deliver higher brand metrics than smaller logos, and even more so for Millennials.
  • CTA’s should be included in video ads, as they generate increases in lower-funnel metrics such as Purchase Intent and Brand Recommendation.
  • The brand should be introduced at any point in the video ad. Key brand metrics are not impacted whether the brand is introduced in the beginning, middle, or end of the video.
  • Different ad tones should be employed to drive Millennials down the purchase funnel.
  • Video ads must be optimized for screen alignment.Horizontal is more effective at increasing familiarity and purchase intent when compared to the relatively newer vertical portrait ads.
  • 15/:30 ads in pre-roll formats as they drive higher aided recall, affinity, purchase intent, and recommendation than : 05.
  • :15 native video ads drive greater recall and purchase intent than longer video units.
  • When it comes to native, auto-start ads drive a slight increase in brand affinity and outperforms userinitiated ads in recall and fixation.

“Marketers and agencies are telling us they clearly see great value in original digital video programming,” said Anna Bager, Senior Vice President and General Manager, Mobile and Video, IAB. “This study demonstrates that the NewFronts has the ability to move ad dollars. Considering this year’s presenter line-up of top-tier, innovative media companies, and content creators, we expect that the event will inspire spend during the marketplace’s two-week period and beyond.”

Join us at PORTADA Mexico!

 


People change positions, get promoted or move to other companies. Portada is here to tell you about it.

 ::: Alexandre Hohagen, Pedro Cabral – Nobox ::: Scripps Networks Interactive – Eduardo Hauser ::: Barbara Miller – FLUVIP  ::: Facebook – Alejandro Zuzenberg, Carla Lanzillotta  ::: Alejandro Fishman – Yahoo! ::: Pablo Armagni – Telefónica Group  ::: McCann Buenos Aires – Rafael Quijano, Darío González, Enrique Gray, Soledad López, Luisa Goldaracena, Constanza Brigante ::: General Electric Latin America – Rafael Santana ::: Laura Zubeldia – Microsoft :::

Click here for previous Latam Changing Places editions

descargaAlexandre Hohagen, former CEO of Google and Facebook in Latin America and US Hispanics, is joining Nobox, a full-service marketing agency to continue developing its strong Latin America business, as CEO and Partner. Hohagen will bring his experience with advertising and technology in these markets with the goal to further enhance the agency’s relevancy and footprint for its marquee clients including Netflix, PlayStation, Hotel Tonight, Marriott, Copa Airlines, Royal Caribbean and Volkswagen.Read more.

In addition to Hohagen, Pedro Cabral, founder and former CEO of Agencia Click in Brazil and former Chairman of Isobar Global, will become the new Chairman and Investing Partner.

descargaScripps Networks Interactive has announced the appointment of media and technology veteran Eduardo Hauser to the position of Managing Director, Latin America and the Caribbean. Hauser joins the company on March 7 and will be based in Miami.Read more.

 

 

Barbara 1Barbara Miller has accepted a new position as VP, Sales and Marketing at FLUVIP, a programmatic platform for Influencer Marketing in the U.S. Hispanic and Latin American markets. Previously Miller worked at Latina.

 

 

 

vvvAfter having served as Director for the Southern Cone at Facebook for 4 years, Alejandro Zuzenberg has announced that he is leaving the corporate world to start a career as an entrepreneur.

 

 

mmmmAfter nearly 4 years at Facebook, Carla Lanzillotta has left her position as commercial director of vertical technology market to joined OLX as director of ad sales and operations.

 

 

 

vbvbvAlejandro Fishman, former country manager of Yahoo! Argentina, told Portada editorial team “after more than 20 years working as an employee for big companies, this is a unique moment I wish to truly enjoy as it won’t probably happen again. It is important for me to take the time necessary to figure out what I really want do and where do I want to go, so I can choose what it is best for me, personally and professionally.”

 

descargaPablo Armagni will head the Communications and Images Board of Telefónica Group, reporting to Alejandro Lastra, director of Communication and Institutional Relations. In this new role, Armagni will define Internal and External Communications policies, Brand Management, Advertising, Sponsorships and Media of all companies within Telefónica Group in Argentina.

 

 

arg.McCann_StaffRafael Quijano and Darío González have joined McCann Buenos Aires as creative directors.They will report directly to president and DGC, Juan Manuel “Chavo” D’Emilio, according to Adlatina. They will handle the accounts portfolio that includes brands such as Nestlé, MasterCard, Beauty Team L’Oréal París and Zurich Seguros, among others.

Enrique Gray joins the finances area as the agency new CFO.

In addition, Soledad López, Luisa Goldaracena and Constanza Brigante have been appointed Account directors. Lopez will handle MasterCard, Nestlé, and Zurich Seguros; Brigante L’Oreal Paris Beauty Team; and Goldaracena will take over a new client.

santanaGeneral Electric Latin America has chosen Rafael Santana, an executive with over fifteen years of experience in the company, to consolidate its position in LatAm. Santana comes from heading Turbomachinery Solutions, part of GE Oil & Gas. The executive will be based in San Pablo, Brazil. Prior to joining GE, Santana held leadership positions in ExxonMobil and British American Tobacco.

 

descarga (1)Laura Zubeldia is Microsoft new Marketing Director for Argentina and Uruguay.The executive has over 22 years of experience in the area and has been in Microsoft for 9 years. Zubeldia will be in charge of implementing strategic coordination and marketing plans in different segments of the LatAm market.

What: Yahoo has issued an statement where it claims that Yahoo Recommends, a monetization platform for publishers and part of its suite of publisher solutions, will be closed to new sign-ups.
Why it matters: The moves comes at difficult times for Yahoo, as the company has been experiencing a sucession of slumps lately. Yahoo Recommends visitors will be directed to its other products.

imagesYahoo has issued an statement where it claims that Yahoo Recommends, a monetization platform for publishers and part of its suite of publisher solutions, will be closed to new sign-ups and visitors will be directed to its other products.

“Yahoo Recommends signups are now closed, ”said the company through the statement. “We have not made the decision to shut down Yahoo Recommends, however, we are not actively signing up new publishers at this time,” told a spokesperson to Digiday.

We have not made the decision to shut down Yahoo Recommends, however, we are not actively signing up new publishers at this time

Yahoo Recommends, a competitor to platforms like Taboola and Outbrain, had been launched in September 2014.

The moves comes at difficult times for Yahoo, as the company has been experiencing a sucession of slumps lately, like shutting down several of its other properties including its digital “magazines.”In addition, the company has been forced to put its core business  for sale, while slashing 15% of its workforce.

Yahoo Recommends is powered by Yahoo’s personalization technology and enables publishers to display its articles in a variety of layouts on desktop and mobile,while featuring ads served through Gemini from other publishers and advertisers. The ads allowed content recommendation companies to get paid when people click on the content or ads in the widgets.

Yahoo Recommend was able to get three well-know publisher names when it was launched: CBS Interactive, Hearst Magazines and Vox Media, according to Digiday. However, CBS Interactive later  signed with Taboola and Hearst began using my6sense to power suggested articles on its sites. Vox Media sites are still displaying the Yahoo Recommends widget.

Related Articles:
Yahoo to Shut Down 7 of Its 11 Digital Magazines
4 Things to Know About Yahoo’s Q4 2015 Results and New Strategic Plan

What: Yahoo is shuttering of 7 of Its 11 Digital Magazines: Yahoo Food, Health, Parenting, Makers, Travel, Autos and Real Estate.
Why it matters: The company is planning to focus on its’ four remaining verticals: News, Sports, Finance and Lifestyle, after a rough 2015.

Portada-Online.com - HomePage - Image - 1200 x 628 - 1.9-1 - News (5)Yahoo has been going through a rough patch lately. Two weeks ago we reported about Yahoo’s Q4 2015 revenues as well as about CEO Marissa Mayer’s new turnaround plans.  Now, the tech and media giant has announced the shuttering of 7 of Its 11 Digital Magazines: Yahoo Food, Health, Parenting, Makers, Travel, Autos and Real Estate.

The move is aimed at simplifying the company’s business model while focusing on its’ four remaining verticals: News, Sports, Finance and Lifestyle, according to Adweek.

“While these digital magazines will no longer be published, you will continue to find the topics they covered as well as style, celebrity, entertainment, politics, tech and much more across our network,” said Yahoo’s global editor in chief Martha Nelson in a statement.

Although the shuttering means Yahoo will save US$400 million a year, unfortunately, it also means many people are being or have already been laid off.

The “Digital Magazines” were created as part of an initiative brought by Yahoo’s CEO Marissa Mayer, to create unique Yahoo properties that could  compete with premium brands online.

Related articles:
Yahoo’s Q1 Digest: Growth in MaVeNS, Price Pressure in Programmatic, New Video Ad Units
Yahoo Earnings Q4 2014: Revs fall 6%, spins-off Alibaba stake

What: Mobile platform Unlockd has partnered exclusively with Boost Mobile, one of Sprint’s prepaid brands, to launch the first of its kind Android app Boost® Dealz that will help customers reduce monthly phone payments in exchange for viewing ads. (Interview with Sprint’s Oscar Meza and TruMC’s Alice Ovadia-Updated).
Why it matters: If succesful, an ad supported mobile phone service could be trendsetting and relevant for advertisers who want to avoid ad-blocking and target Hispanics and Millennials.

imagesMobile platform Unlockd has partnered exclusively with Boost Mobile, one of Sprint‘s prepaid brands, to launch Boost® Dealz – an Android app available for the U.S. market that’s the first of its kind that helps customers reduce monthly phone payments in exchange for viewing exclusive content and offers when unlocking their smartphones.

Once they unlock their phones, customers are shown a full-screen ad which will show up every two or three unlocks. Geo-targeted ads, offers, discounts or content from brands such as Starbucks, Levi’s and Lyft, are shown at various times as consumers unlock their Android smartphones. Users can interact for further information or dismiss ads with a simple click on the X. The app will download on average about 120 MB of data per month, which is the equivalent of streaming music for about three hours.

Boost Dealz is available to Boost’s current and new customers. The app connects users with relevant brands and offers, and users receive a US$5 credit each month. Although the new app plan currently limits the amount of ads that people can see, the carrier could decide to increase or decrease that cap based on customers’ feedback, CNN Money reports.

The Hispanic segment is a big target audience for it. Also, we are looking for a future product release to provide a full product in Spanish for both the app itself (Customer Experience) and the ads.

This is a major breakthrough as the model provides not only benefit back to consumers, but is breaking new ground for global telcos through the creation of new revenue streams from high-profile publishers and advertisers.”

New Revenue Streams

AAEAAQAAAAAAAARSAAAAJDc5OTNjYTY1LTcxY2EtNDQ2My1iYjg2LWRmMjJjOTVmNmMzYwPortada spoke with Oscar Meza, Manager – Hispanic Media and Community Relations at Sprint, about Boost® Dealz:

Portada: Is a substantial target audience for this new offering Hispanic?

O.M: “We have launched this product on Boost Mobile and a  substantial portion of Boost’s base is Hispanic. The Hispanic segment is a big target audience for it. Also, we are looking for a future product release to provide a full product in Spanish for both the app itself (Customer Experience) and the ads. More to come on this. No dates have been determined yet.”

Portada: What unit of Sprint sells advertising into this new service? 

O.M: “Sprint is not selling advertising into this. Our Partner, UnLockd, has partnerships with big ad networks to sell advertising space through this property.”

Portada: What are the expectations regarding this new product in terms of subscriber count? 

O.M: “This is the first time any top tier operator is trying an ad supported business model so we are expecting to learn more about consumer behavior and how much it appeals to them. It could be a smash hit and numbers can go through the roof but we are not yet ready to put a count to it. We will learn and apply those learnings to evolve the product and continue to provide best value to the customers.”

Portada: How is the new offering going to be marketed/What media is going to be bought?

O.M: “There is no media budget dedicated to this initiative for now, however we have a full marketing plan to promote this product.”

Portada: is there a tie in between Boost Deportes en Vivo and this new “ad driven” product?

O.M: “Our existing boost TV Live Sports bolt-on (“Deportes en Vivo” in Spanish) and there is currently no tie between these two products. However we are contemplating promoting boostTV and other products via Boost Dealz either directly ourselves or by engaging our vendors/partners. International Connect for example is another product that is currently targeting our Hispanic segment and that could benefit from promotion via Boost Dealz. More to come on this as well.”

More Options for Consumers

Alice Ovadia, VP Brand Media and Insights at Dallas based TruMC, whose clients include MetroPCs, notes that “giving consumers the option to receive ads on their home screen in exchange for a $5 off discount is a good way to incentivize users to view ads while giving Boost an opportunity to monetize their wireless networks and profit from mobile advertising dollars that are going to other companies such as Facebook, Twitter or publishers direct.  It will be interesting to see how much traction their “Boost Dealz” app has with consumers and brands.”

Carriers need to stay on their toes and continuously find new revenue streams and ways to innovate.

Ovadia adds that an in an ever-competitive environment, wireless carriers need to stay on their toes and continuously find new revenue streams and ways to innovate.  Leveraging their rich customer data base and network seems like a great way to do just that.”

A summary of the most exciting recent news in advertising technology in the U.S., U.S.-Hispanic and Latin American markets. If you’re trying to keep up, consider this your one-stop shop.

US/US-HISPANIC MARKET

BIG CUTS AT YAHOO: Yahoo Inc. announced that it plans to lay off 15% of its employees in its $400 million cost-cutting mission, which CEO Marissa Mayer claims is part of a plan to “simplify” the company. This comes in the wake of the announcement that Yahoo’s Mexico and Argentina offices are to close. Here 4 things to take into account about Yahoo’s earnings and new strategy, as Portada’s Editorial Team sees it.

alphabetGOOGLE’S ALPHABET MOST VALUABLE PUBLIC COMPANY IN WORLD: Google‘s parent company, Alphabet, is officially the most valuable public company in the world, pushing past Apple for the first time since 2010. Alphabet has a market cap of $547.1 billion, higher than Apple’s $529.3 billion as of 9:45 a.m. ET.

FACEBOOK MAKES GAINS IN DIGITAL ADVERTISING: Facebook‘s share of the digital advertising market is up from 8% last year to 10% this year, according to eMarketer. Google‘s went from 32% to 30%.

HYPER-TARGETING IS IN: Ad tech firm Grapeshot has raised $8.5m in funding, bringing its total raised to $14.25m. Grapeshot’s technology enables advertisers to bid for space on content sites and target ads to websites with certain pre-determined keywords. Why didn’t I think of that?

THE FUTURE OF ADS IS VISUAL: Image recognition marketing startup Curalate just raised $27.5 million, bringing its total funding to $40 million. Some of Curalate’s features include Like2Buy, a gateway that enables product sales directly through Instagram posts, Fanreel, which incorporates images generated by users into brand websites, recognizes and tags them as products, and Visual Insights, which generates analytics about the products that users are sharing on platforms like Instagram, Pinterest, Tumblr so that brands know what is popular.

Independent cross-screen data management platform (DMP) Lotame announced that veteran media executive Doron Wesly will be taking on the role of SVP of Marketing and CMO. Wesly has more than 20 years of experience in the sector, with a special focus on brand and research strategy. Working on Lotame’s International Expansion will be one of his main tasks.

SKY’S THE LIMIT WITH PROGRAMMATIC: Pay TV company Sky has invested $10 million in DataXu, a programmatic advertising analytics software provider that helps advertisers and media agencies engage with consumers across devices through analyzing and optimizing buying decisions. Sky will be using this investment to push its Sky Media’s Sky AdVance product built to facilitate multi-platform ad campaigns and programmatic purchasing of addressable TV ads.

AD BLOCKERS, IF YOU CAN’T BEAT ‘EM, JOIN ‘EM: Samsung has decided that the new version of its web browser on Android phones will allow users to install ad-blocker extensions.maxresdefault

NEW ACQUISITIONS: Digital asset management and video delivery platform Adstream has acquired the AdServices division of media and entertainment production firm Deluxe, helping Adstream in its effort to expand its presence in the U.S. and worldwide. Adstream provides agencies and brands with transcoding and digital asset delivery, and also generates analytics and creative versioning for video.

SHOCKER: PEOPLE DON’T LIKE FORCED AD FORMATS: Ad-tech firm Teads released a study with data on why people use ad blockers online. Conducted by Research Now, the study claims that intrusive and forced ad formats are the biggest motivating factor behind ad-blocker adoption. Three out of four U.S. respondents say that intrusiveads were the largest motivator for installing ad blockers, and 80 percent of respondents would reconsider installing ad blockers if the ad experience provided them with the choice to skip or close the ad.

MOBILE ON THE MOVE: Mobile ad platform Widespace has  secured $17.2m in growth capital from Kreos, which provides growth debt to high-growth companies.CEO and co-founder  Patrik Fagerlund says the money will help them become leaders in Europe, as well as aid in their expansion to other parts of the globe. The company reaches 230 million unique users across Europe, the US, Brazil and the MENA region every month.

BIG MONEY FOR TAPAD: New York-based ad tech startup Tapad has been sold to Telenor Group for $360 million. The company was founded in 2010 by Are Traasdahl, and has built software that helps advertisers to identify custom audiences across mobile, television and desktop.

LATAM MARKET:

BRAZIL, ARGENTINA DON’T LIKE ANNOYING ADS EITHER: The previously-mentioned Teads study revealed some interesting data on Brazil and Argentina: 64% of Brazilians use teadsad blockers because of annoying advertising.  75% of those surveyed believed that forced or intrusive advertising is annoying, and mobile ads are perceived as more annoying than those on desktop. In Argentina, 57% of those surveyed consider pre-roll campaigns annoying. However, only 13% of Argentineans believe that native ads are intrusive.

NBC Universal has tapped Spanish content producer Mediapro to run its on-air promotions across Latin America through Mediapro’s Argentinean subsidiary, Promofilm. Mediator will be responsible for all audiovisual material and technical advertising production for LATAM.

With the announcement last week that it was closing offices in Latin America, Yahoo’s Q4 2015 earnings and new statements by Yahoo CEO’s Marissa Mayer’s about the company’s 2016 strategic plan are in the spotlight. The digital media, marketing and financial communities are all analyzing Yahoo’s next steps…Four things you need to know.

1. FOCUS on Key Products…

300Search, E-Mail and Tumblr, which Yahoo acquired in 2013 but in the earnings announcement wrote off by US $230 million, are the cornerstones of Yahoo’s expansion strategy. Mayer also mentioned that Yahoo’s online video company Brightroll would also play an important role.

…Content Areas

News, Sports, Finance and Lifestyle are the key content verticals Yahoo is going to invest in.

and Markets.

According to Mayer, Yahoo’s growth strategy is now going to focus on the United States, Canada, U.K., Denmark, Hong Kong and Taiwan markets. Surprisingly, Marissa Mayer did not mention any other European markets but the U.K (e.g. Germany). BTW: the Americas make up 80% of Yahoo’s revenues when looking at the geographic breakdown. As part of the increased focus on key products and markets, Yahoo will reduce its workforce by 15%, bringing its workforce down to 9,000 employees, and close 5 offices (Dubai, Mexico City, Buenos Aires, Madrid and Milan). The product and market exits will impact approximately US $100 million in revenue and reduce operating expenses by US $400 million.

The product and market exits will impact approximately US$ 100 million in revenue and reduce operating expenses by US $400 million.

2. Desktop Legacy Business: Very Slow

Yahoo’s revenue growth in the fast growing digital media space only amounted to 2% in Q4 2015 compared to the same period a year before. With the Mavens (See below, mobile, video, native and social) growing by 26%, this means that the traditional desktop display advertising business is stagnating. Display advertising still makes up almost 50% of Yahoo’s total revenues.

3. Mavens: Hope or Reality?

Mavens, is the word Mayer coined to describe mobile, video, native and social, when she took the helm at Yahoo 3 years ago. In fact, Mavens did drive Yahoo’s growth during the fourth quarter of 2015. These units grew nearly 26 percent year-to-year to US $$472 million in the fourth quarter. Yahoo expects Mavens to exceed US$ 1.8 billion in 2016. If they reach that level, they would still amount to less of 40% of Yahoo’s total revenues. Compare that to Facebook which in 2015 had US $17.93 billion in revenues (and almost US$ 3.7 billion in profits!). More importantly in Q4 2015 80% of Facebook’s revenues were generated by mobile sales, meaning that even if Yahoo reaches its goal, the MaVenS share will be much smaller than Facebooks.

4. Growth in Native Advertising

Within Mavens which is interesting to see that native revenue grew to US$ 160 million by 55%. Native advertising are place in stream and in a similar way to the editorial content of the property it is placed on. Yahoo’s growth rate shows the success of their own efforts but also the tremendous growth native is experiencing right now.

We take a look back on some of the indicators behind Yahoo!’s decision to close its offices in Mexico and Argentina. Yahoo! was one of the first companies to offer an Internet search engine with an email address, but in reality, its business is not growing, and its needs to make radical changes to compete.

By Ximena Cassab, translated by Gretchen Gardner

The announcement that Yahoo! is closing its offices in Mexico and yahooArgentina came as a surprise for those that were unprepared. Nonetheless, the 22 year-old company founded in Silicon Valley was showing signs that it needed a radical structural change to grow at the rate some of its competitors grow (e.g. Google and  Facebook).

“It’s a surprise that Yahoo! Mexico is closing, since it was once of the first American companies in the country, and it always operated with a profit,” says Pedro Labarta, general director for Mexico and LatAm at Brand Networks. “It doesn’t matter if they once had 100 employees and now have 15. (Yahoo!) always looks for the way to stay strong.”

A New Growth Strategy

Since last year, shareholders and the members of the Board of Directors have pressured Marissa Mayer, CEO of Yahoo! since July 2012, to show a higher profitability and stay competitive in the face of strong competition from other companies like Google and Microsoft.

To do so, the company established a new action plan, along with the consulting firm McKinsey, based on three elements: investment, maintenance and elimination. Mobile search, for example, entered the investment category, and Yahoo! Finance could be filed under maintenance according to Silicon Beat, which cited a source close to the company.

On the other hand, offices in international markets with low profitability  are part of the elimination category. Mexico and Argentina’s offices are two of those.

Millionaire Demands

In 2011, Yahoo! and Yahoo! Mexico faced a lawsuit for $2.7 million for breach of contract by the Mexican companies World Wide Directories and Ideas Interactivas. The company emerged unscathed, and the court revoked the sentence in which the company had lost. Nonetheless, the event left the company in on the watchlist of international and national courts.

Competition for Advertisers

Yahoo! was one of the first companies to offer a search engine and email address on the Internet. It’s primary sources of revenue were from advertising through banners and pop-up windows. But the strong competition for “likes” and advertisement that appears on Google and social networks like Google means that buyers labartadistribute their budget among more media, leaving Yahoo! behind.

Advertising in Mexico has been more centered on Google, sites that focus on certain content, and finally social networks and video, taking up much of companies’ budgets, says Labarta.

What’s more, the financial strain on Mexico and Latin America has a direct impact on companies’  commercial budgets. It’s not surprising that they will make smaller advertising investments and focus more on just a few types of media properties.

More Changes Are  Coming

Despite the shutdowns in Mexico and Argentina, “Latin America is an important region for Yahoo! and we will continue to invest in our consumers and local products,” wrote a Yahoo! spokesperson to Portada through e-mail. The company will continue to have a sales team in Brazil and Miami to meet the demands of pan regional clients.
Henry Zammarripa of Yahoo! in Miami told Portada that “Armando Rodriguez will continue as the VP & managing director of LatAm/US-Hispanic, and I will continue in my role as the regional sales director for Latin America.”

“Seeing that Yahoo! couldn’t keep up in terms of numbers, it’s understandable that they closed smaller operations to maintain those that delivered better numbers,” says Brand Networks Labarta. “Leaving the operation in Brazil is understandable, but the question would be, ‘for how long?'”

Tomorrow February 2, Yahoo! will report its latest quarter results. These will be decisive for obtaining more information about a probable restructuring of the company. Some experts speculate about the possible outsourcing of some of their functions and even a sale to another giant, a somewhat similar  situation to the one in which AOL was acquired by Verizon last year.

 

January seemed like a calm month, but it wasn’t. Everything seems to indicate that decisions have been made that will define the year. From the closing of Yahoo‘s offices in Mexico and Argentina (wow!), to various reorganizations and launches, it seems like 2016 is off to a start that few expected.

Translated by Gretchen Gardner

Yahoo Shuts Down Operations

A few days ago I looked at my  Facebook feed, as I do every day, yahooand saw that a few of my friends in Mexico had changed their profile pictures to an image with a purple background with text that read, “Once Purple, Always Purple. We stand with all of you.”

In addition to the images, there were messages expressing condolences with pictures that depicted different professional memories from the past years, tagged in a way that suggested nostalgia.

yahoocouchI understood that something had happened in Mexico, but didn’t understand what. Until someone else dared to ask about this state of mourning. Like that, I found out that Yahoo had closed its office in Mexico. And then I found out that the same thing had happened in Argentina. Consequences of globalization (and I’m based in Buenos Aires).

With the shutdown of Yahoo operations in the region, an era comes to an end. It’s a big deal. Digital professionals tend to put a lot of passion into what they do, and when things end this way, so do parts of our professional stories.

We will miss the best parties in the industry. Those purple wigs. That Bergère couch that was so emblematic. We have a lot of lovely shared memories.

A New Project

diego
Diego Cormio

A few days ago I found out that Diego Cormio had left his job at
Clarín, where he was developing their digital business in the commercial area. Apparently, he will be working on a professional project (it seems like he still can’t say much). How intriguing!

US Media Consulting is Renewed

GAston-real
Gaston Real

There are changes going on within the USMC team. Gaston Real entered as CTO to lead the technology team that runs MediaDesk. Salvador Caloggero is now the product definitions as Product Owner and Ignacio Roizman took on a commercial role, now leading the local sales team (as he continues to manage  the regional operational aspects as COO).

Careful, It Vibrates!

I found out that Opera Mediaworks will be launching a rich media format with vibrating technology. This means that the format will make phones vibrate according to what is seen on the screen to simulate explosions, car engine sensations, shots, etc.

Be careful, if a client works with this format and you find yourself within their target, your phone will probably start to vibrate. Don’t say I didn’t warn you.

Growth Startups

It seems like the Growth Startup team has started 2016 on a roll. They just signed an agreement with an important multinational company in electronics based in Uruguay. They couldn’t tell me much more, but I’ll give you a clue: they produce cell phones and televisions. Who could it be?

Google Jumps on the Green Bandwagon

I’ve been told that the AdWords team has been moved to the third floor in Puerto Madero. I haven’t seen it personally, but they told me that the style is very “green” and “zen.” In that atmosphere, it’s fun to be stressed. Of course I’m only kidding.

That’s all, folks. See you in February! It will be a short month, although I am guessing there will be much to talk about.

Our monthly unique user rankings of the top properties visited by U.S. Hispanics and the  overall U.S. population provide interesting insights (besides the almost obvious fact that Google continues to lead, ha!) . 6 Things you need to know about how top destinations fared in October 2015.

1. Despite all the Talk, Yahoo is a Major Force

Yahoo’s board is currently assessing its future (options include to sell its core Internet business ), due to the company’s slow progress in increasing its profitability. Yet, as the below rankings show Yahoo is still a force to be reckoned with (ranked second overall and fourth in the U.S. Hispanic market), with more than 148 million uniques in the overall U.S. market (above Facebook, although time per visit and frequency are much higher on Facebook).

2. Mode Media’s High Ranking Reflects Popularity of Lifestyle and Fashion Vertical

Perhaps relatively surprising is the fact that fashion and lifestyle online media company Mode Media is among the top 10 properties both in the U.S. Hispanic and general market. The other 9 properties are mostly usual suspects (e.g Facebook, AOL, Wikipedia, Yahoo, Microsoft etc…). Mode Media, which used to be known as Glam Media, is a privately held digital lifestyle media company with more than 10,000 lifestyle creators. Mode’s success also highlights the popularity of the fashion and lifestyle verticals.

3. NBC/Telemundo Doesn’t Make the Top 10 Sites For U.S. Hispanics

While Comcast/NBC Universal sites (which include Telemundo) is the 10th largest destination in the overall market, they don’t make the top- ten list among the most visited properties by U.S. Hispanics.

4. Univision is not Among Top 10 Properties visited by U.S. Hispanics (Either)

Another interesting insight is that while Univision (and Telemundo, see above) are the leading media when it comes to Hispanic broadcast viewers, both companies are not among the 10 most popular for Hispanic online audiences.

5. Apple, Strong with U.S. Hispanics

Apple’s digital destinations are ranked number eight among the U.S. Hispanic users and can not be found among the top-ten of the overall market. This may be related to the fact that Hispanics over-index in music consumption services such as Apple’s iTunes.

6. Similarly to Yahoo, Microsoft Should Not Be Forgotten Either as a Major Online Destination

Microsoft recently outsourced most of its Advertising Sales business to AOL/Verizon. This is a part of their new CEO’s strategy to concentrate on the content (and not the ad-sales business.) Ranked number fourth with 144 million uniques in the overall U.S. market and second (!) among U.S. Hispanic users.

U.S. Ranking

Source: comScore, United States, and Work, PC/Laptop Only                               Total Unique Visitors (000)October 2015, Home Total Unique Visitors (000)
Total Internet: Persons: 6+232.179
1Google Sites203.570
2Yahoo Sites148.215
3Facebook145.344
4Microsoft Sites144.151
5Amazon Sites106.766
6AOL, Inc.100.461
7Mode Media71.813
8CBS Interactive64.362
9Wikimedia Foundation Sites58.731
10Comcast NBCUniversal55.140

 

U.S. Hispanic Ranking

Source: comScore, United States, and Work, PC/Laptop OnlyTotal Unique Visitors (000)October 2015, Home Total Unique Visitors (000)
  Hispanic All:  Persons: 6+30.245
1    Google Sites26.604
2    Microsoft Sites18.479
3Facebook18.413
4    Yahoo Sites17.769
5Amazon Sites11.632
6    AOL, Inc.10.922
7Mode Media8.050
8Apple Inc.6.948
9Wikimedia Foundation Sites6.431
10CBS Interactive6.251

What:Yahoo’S NFL first-ever livestream football game between the Jacksonville Jaguars and Buffalo Bills Sunday in London attracted 15.2 million unique viewers.
Why it matters: 33 percent streams, out of the 33.6 million total views, were from international users across 185 countries worldwide.Despite the good numbers,streaming is not ready yet to replace traditional TV broadcasts.

imagesYahoo’S NFL first-ever livestream football game between the Jacksonville Jaguars and Buffalo Bills Sunday in London attracted 15.2 million unique viewers, around a third coming from outside the US., and 33.6 million total views.

33 percent of the streams were from international users across 185 countries worldwide.

According to the NFL, 460 million total minutes of video were viewed, meaning that despite a unique viewership of 15.2 million, the broadcast only had an average viewership per minute of 2.36 million.

Although the figures were good, as last year’s Super Bowl got around 1.3 million streamers per minute, it seems streaming is not ready yet to replace traditional TV broadcasts.

The numbers are well below traditional televised games that attract 10 to 20 million viewers simultaneously

descargaThese years numbers outstrips NFL games’ previous streaming records but still are well below traditional televised games that attract 10 to 20 million viewers simultaneously. In comparison, the last game played in London, between the Jets and the Dolphins, had an average of 9.9 million TV viewers per minute.

In addition, Yahoo may have inflated the number of unique users as the site  autoplayed the stream on its homepage, its fantasy sites, and Tumblr during the game.

Still, the NFL’s Hans Schroeder said the league was “thrilled with the results” as Yahoo was able to reach a global audience with just a game between two smaller market teams with losing records.

“It’s been a great opportunity to partner with the NFL and deliver a truly exceptional global live streaming experience for our users,” said Adam Cahan, Yahoo’s SVP of Product and Engineering, said in a release. “We’re seeing a dramatic shift in the industry as audiences’ primary video watching moves away from TV. We were thrilled to join the NFL in setting a new standard for sports programming for our users and advertisers.”

“We’re thrilled with the results of our initial step distributing an NFL game to a worldwide audience and with the work of our partner, Yahoo,” said Hans Schroeder, Senior Vice President, Media Strategy, Business Development & Sales for the NFL. “We are incredibly excited by the fact that we took a game that would have been viewed by a relatively limited television audience in the United States and by distributing it digitally were able to attract a global audience of over 15 million viewers.”

Undoubtedly, the results leave the door opened for more streaming NFL games in the nearest future.

What: Yahoo has closed a new search deal with Google after releasing its third-quarter earnings results.
Why it matters: Google will provide Yahoo with search ads, algorithmic search, and image search services for both desktop and mobile on a non-exclusive basis.

KN-NzuRl_400x400 lCKj53DE_400x400Yahoo has closed a new search deal with Google after releasing its third-quarter earnings results.

Under the terms of a new arrangement, which will become effective October 1st and las until the end of 2018, Google will provide Yahoo with search ads, algorithmic search, and image search services for both desktop and mobile. Yahoo will also decide which search queries to send to Google and will not have to meet a minimum requirement of queries.

With this new deal, Yahoo is trying to squeeze more money out of its search engine, although it lacks the technology to better manage queries and more adequately serve ads. Hence the partnership with Google, the most dominant search engine globally. Yahoo’s search network only got 12.7 percent marketshare in US desktop searches in August, while Google has nearly 64 percent, Comscore reported.

Yahoo made a similar 10-year deal with Microsoft in 2010, which according to the company,  will no affect on the slightest Google’s deal. Microsoft helps Yahoo powers its search engine in exchange for giving the Windows maker a single-digit cut of search ad revenue. However, Microsoft and Yahoo loosened their arrangement in April, adding in a termination clause that would let either company walk away from the deal with four months’ notice.

“Google’s offerings complement the search services provided by Microsoft, which remains a strong partner, as well as Yahoo’s own search technologies and ad products, ” said Yahoo in a  statement.

 

 

Millennials, not surprisingly, play a dominant role on many of the top social media sites accounting for almost 70% of Instagram users and 61% on Twitter, according to the latest research from GfK MRILinkedIn has the highest median household income (approximately US$112,500) and the highest education levels among the top social media, photo, or video-sharing sites.

8539048913_3328e8545c_mMillennials play a dominant role on many of the top social media sites. This coveted consumer generation represents 70% of Instagram users and 61% on Twitter, according to the latest research from GfK MRI.

According to GfK MRI, LinkedIn has the highest median household income (approximately US$112,500) and the highest education levels among the top social media, photo, or video-sharing sites. Two-thirds (65%) of LinkedIn users fall into the “graduated college plus” category, compared to 29% of all adults. Pinterest users rank second in education level, with 41% registering as “graduated college plus.”

Users’ Age

The median age of Facebook users is 40 — up from 29 in 2009. The median ages of other social site users are 44 for LinkedIn, 42 for Google+, 38 for Pinterest, 38 for YouTube, 32 for Twitter, and 30 for Instagram.

Just adding social media sites to a plan without other sophisticated targeting no longer automatically increases your younger or savvy target groups.

Men VS Women

Across the seven major social and photo/video sharing sites, men outnumber women among users in just three:

  • LinkedIn (55% of users versus 45%)
  • Twitter (54% to 46%)
  • YouTube (51% to 49%)

Women are the majority of users of:

  • Facebook (57% versus 43%)
  • Google+ (53% to 47%)
  • Instagram (60% to 40%)
  • Pinterest (81% to 19%).

“These results clearly show that many of the social media applications are becoming mainstream, which bodes well for the long term viability of those companies,” said Florian Kahlert, Managing Director of GfK MRI. “At the same time, this growing acceptance raises the bar for media planners (and inventory sellers), because just adding social media sites to a plan without other sophisticated targeting no longer automatically increases your younger or savvy target groups.”

What: Yahoo revealed its Q1 2015 results. Revenue lied at US$1.04 billion, as opposed to analysts’ estimate of US$1.06 billion.Overall MaVeNS revenue (mobile, video, native advertising and social) was of US$363 million during Q1 2015.Mobile revenue did grow year-over-year to US$234 million in Q1, up 61%, it dropped a bit quarter-over-quarter from US $254 million.
Why  it matters: Despite relatively weak Q1 2015 earnings, Yahoo continues to bet on mobile, native and video. Particularly, on Video with two new video ad units that will be sold through Gemini, Yahoo’s marketplace for mobile search and native advertising.

descargaYahoo’s Q1 2015 revenue closed at US$1.04 billion, as opposed to analysts’ estimate of US$1.06 billion. However, the company continues heading on mobile with a US $234 million in mobile revenue, up from US $145 million but down from US $254 million in Q4 2014.

Overall MaVeNS revenue (that is mobile, video, native advertising and social), as CEO Marissa Mayer refers to, was US$363 million during Q1 2015, up from US$230 million at this time last year.Regarding display, GAAP revenue totaled US$464 million last quarter, a 2% increased YoY. Display revenue minus traffic acquisition costs, however, decreased 7% YoY to US$381 million.

descarga (1)Mayer attributed the fall in prices to programmatic: “The programmatic ad marketplace is very efficient in terms of targeting and placing ads in favor of the advertiser, which we think is great and delivers great value. But it puts increased pressure on our programmatic ads and, implicitly, the premium ads moving into the programmatic sector.”

The programmatic ad marketplace is very efficient, but it puts increased pressure on our programmatic ads and, implicitly, the premium ads moving into the programmatic sector.

Mobile focus

Lately, Yahoo has proved to be focusing more on mobile by launching its Mobile Developer Suite in February, combining Gemini, Yahoo’s marketplace for mobile search and native advertising, with its recent acquisitions of mobile analytics company Flurry and video DSP BrightRoll.The Flurry SDK is now present in more than 700,000 applications, and mobile monthly actives on Yahoo are at 600 million, up about 20% YoY.

“Yahoo is investing passionately in the developer ecosystem to improve the quality and the monetization of our partner applications,” Mayer said.

 Video Side: New Ad Units

According to Mayer, Yahoo demographic and behavioral data has been integrated into the BrightRoll marketplace, along with Yahoo-owned and -operated video inventory.

Now the company has revealed two new video ad units. Native in-feed video and video app install ads will appear in Yahoo’s digital magazines and apps, as well as on desktop and mobile web properties, both O&O and syndicated sites.Both will be sold through Gemini.With these new units, Yahoo’s goals are to improve user experience and ad performance. In terms of the demand, to appeal to developers and app marketers both upstream and down – in-feed native units for brand awareness, video app install ads for more conversion-oriented goals.

“Video is the content format with the highest engagement and we’ve been working to make our ads as valuable as the content itself. We already had in-feed video for a while, which makes this a natural extension of our native ads product,” said Prashant Fuloria, Yahoo’s SVP of advertising products. “The other piece is around advertising. We’ve seen a lot of success with video for a variety of advertiser outcomes. It’s the only ad format that’s growing across both desktop and mobile for this reason.” “Video ads have a role to play across the entire conversion funnel,” he added.

Together, Flurry and Gemini are helping Yahoo to become a mobile-first company

Developers and advertisers will be able to tap into all of Yahoo’s usual targeting bag of tricks, including search, mail and content consumption data, as well as mobile insights from Flurry.This video app install ads bring all of the learnings, technology and data from Flurry to drive app installs and app marketing on Gemini. “we’re looking at user behavior, not just in one app or on one social network or in one game – but across a variety of apps. Any app that is using Flurry,” Fuloria said. Flurry’s targeting is based on the intelligence it gathers from the 700,000 apps that have its analytics SDK installed.

Together, Flurry and Gemini are helping Yahoo to become a mobile-first company. On Yahoo’s Q1 earnings Monday, CEO Marissa Mayer restated her commitment to MaVeNS.As was mentioned above, although mobile revenue did grow year-over-year to US$234 million in Q1, up 61%, it dropped a bit quarter-over-quarter from US $254 million.

“We know we have more to do, but with your support, we will return this iconic company to greatness and growth,” she said. “And we are closer than we’ve ever been to realizing that renaissance.”

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What: Snapchat Inc. is seeking a new round of funding that would value the company as high as US $19 billion.
Why it matters: This latest valuation, a huge increase for Snapchat, could make it the third-most valuable venture-backed company in the world. The high valuation also shows that Social Media platforms like Snapchat that are very popular among Milennials and Teens, are very coveted by investors who expect them to continue to grow at a very high rate.

BoBocYRY_reasonably_smallSnapchat Inc. is in the midst of raising a new round of funding that would value the company between US$16 billion and US$19 billion, making it the third-most valuable venture-backed company in the world.

Photo sharing company Snapchat aims to raise as much as US $500 million in this new round. Those numbers would place Snapchat behind only mobile car-booking application Uber Technologies Inc. and Chinese smartphone maker Xiaomi Corp. in the top three startups backed by venture capital firms, according to researcher CB Insights. Xiaomi is valued at US $45 billion, while Uber’s latest round pegged its value at US $40 billion.

A valuation of US$ 19 billion would place Snapchat among the top three startups backed by venture capital firms.

As Julie Diaz-Asper writes in a recent Portada Sounding Off Column, Marketers should keep their eyes on messaging app Snapchat, which is extremely popular with the under 18 crowd, over 100 million monthly users and 71% under 25.” I haven’t seen great numbers on Hispanic users but given the percentage of teens that are Hispanic it’s fair to assume that we’ll begin to see more adoption,” Asper notes.  “Snapchat’s, appeal to teens can be attributed to fast video and image sharing in a mostly a “parent free zone”, with the extra protection that messages disappear after being viewed”, she adds.

Snapchat’s, appeal to teens can be attributed to fast video and image sharing in a mostly a “parent free zone”, with the extra protection that messages disappear after being viewed.

This latest valuation is a huge increase for the company, which Facebook offered to buy for US $3 billion in late 2013. Snapchat’s previous funding round, completed late last year, valued the company at more than US $10 billion. The valuation of Snapchat is also close to the US$22 billion Facebook Inc. paid last year for WhatsApp Inc.

Since it was founded back in 20122, Snapchat’s valuation hasincreased considerablu. That increase goes hand in hand with a surge in venture spending to the highest level in more than a decade.Specially, as Snapchat continues to add to its active user base and extends its service. Last month it added videos (Discover, a kind of short-form television) and articles by mainstream media outlets such as CNN and ESPN, bringing Snapchat into closer competition with Facebook and Twitter.

Snapchat lets people take and draw on photos, then send them to select friends or add them to a public “story.” The photos and videos disappear seconds after the recipient views them. The company says its users — the app is popular among teens — send more than 700 million disappearing “snaps” and view more than 500 million stories daily.

Unlike competitors like Facebook or Twitter, the company does not use any demographic information to target information to individuals.

Snapchat raised US$485.6 million from 23 investors last year, including Yahoo! Inc. and venture capital firm Kleiner Perkins Caufield & Byers. Previous investors include Lightspeed Venture Partners, Benchmark and Institutional Venture Partners.

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People change positions, get promoted or move to other companies. Portada is here to tell you about it.

 ::: Vicente Jubes – Medula Networks ::: Carolina Rivera – Yahoo :::  Gabriela Venczel – Mediacom::: Mark Read – WPP digital agency ::: Gastón Bigio -Cesar Agost Carreño – Ogilvy Latina :::  DDB Argentina – Bruno Macri – Juan Martínez Cima  :::

descarga (2)Vicente Jubes, until recently CEO at Medula Networks, has departed the online ad network targeting the U.S. Hispanic and Latin American marketplace.Read more.

 

 

 

descargaCarolina Rivera, who previously worked as Pan Regional Advertising Online Sales Lead at Microsoft Advertising, has joined Yahoo’s panregional team also as Pan Regional Sales Lead. She will report to Henry Zamarripa, Regional Sales Director-Latam & Emerging Markets.Read more.

 

loadMediaCom Argentina, a WPP Group’s media agency, has announced the addition of Gabriela Venczel as its new General Account Director. Venczel will contribute in the relationships between the agency and its clients, among which are Banco Santander Rio, Shell, Warner, Revlon, Sony Mobile, + Vision and Mostaza. It also will focus on generating new business.Gabriela Venczel has a degree in Advertising from Universidad Nacional de Lomas de Zamora. With an extensive background in media agencies, she worked for OMD and Universal McCann Argentina for top brands such as Danone, General Motors, MasterCard, American Airlines, Reebok, Johnson & Johnson, HBO, Coca-Cola brands, among others.

descarga (1)Mark Read will succeed Daniel Morel as global CEO of WPP digital agency giant Wunderman, effective Feb. 1.Mr. Read is CEO at WPP Digital, a role in which he will continue, and has been chairman of Wunderman since last year. He will step down from the board of WPP as he takes on leadership at Wunderman.Mr. Morel will become non-executive chairman.In his new role, Mr. Read will be based in London but spend time in all of Wunderman’s offices, in particular New York.

image_400x400After nearly six years leading Ogilvy Latina creativity, and after having positioned the agency as the most creative network in the region, Gastón Bigio, who left his role as DGC in Ogilvy Argentina to found agency David, is finally leaving Ogilvy’s regional creative direction to devote himself to his agency.

 

0f2d0ea46c63f00427ce9e68ae673972_400x400Bigio will be replaced by Cesar Agost Carreño, who will be based in Mexico and will work together with the network CEO, Marcos Golfari. With an extensive experience in Ogilvy Chile, Agost Carreño led the Latin-American network between 2006 and 2009. He joined Ogilvy’s mexican agency in October 2013 as Creative Vice President. Since last year, he has been part of the Consejo Mundial Creativo.

 

B8X7USJIAAAl0PIDDB Argentina has announced the addition of Bruno Macri and Juan Martínez Cima as creative directors. The duo was formed in 2010 at Young & Rubicam agency, where they worked for brands like Quilmes, DirecTV, Movistar, Alto Palermo, Apsa Centers, Journal Olé and Tulip.

 

What: Yahoo released its Q4 2014 earnings report, posting revenues of US$1.18 billion and earnings of 30 cents, and a 6% decline in revenues versus the same period of 2013. Mobile revenues showed a 23% sequential growth rate to US $254 million while display ad revenues  were down 4% to US$532 million. In addittion, Ads sold increased 17%, while the price per ad decreased 20%.
Why it matters: Yahoo’s CEO Marissa Mayer said the company has plans to spin off its stake in Alibaba Group, which will result in a tax-free distribution to its investors, in an effort to revamp its slumping business.She also suggested investors should focus on Yahoo’s growth in mobile, native, social and video, a segment that, albeit less than 30% of overall revenues is growing at a high rate.

3fab1a175e2a87010f23435e0aea0f61_400x400Yahoo reported its fourth-quarter financial performance, including full-year revenue but excluding traffic acquisition costs of US $4.618 billion and full-year adjusted EBITDA of US $1.362 billion.

The company posted net revenues of US$1.18 billion and earnings of 30 cents. This means it almost missed what was estimated, sepecially with Wall Street expecting Yahoo to earn 29 cents per share with US $1.19 billion in revenue.Yahoo´s overall revenue fell 6 % in the last three months of the year and company’s shares were down 3.7 percent at US $36.82 in after-hours trading.

Yahoo’s plans to leverage Flurry’s developer connections to launch a mobile ad network.

Yahoo’s CEO Marissa Mayer said the company has plans to spin off its stake in Alibaba Group, which will result in a tax-free distribution to its investors.

Mayer also commented on Yahoo’s plans to leverage Flurry’s developer connections to launch a mobile ad network. As almost 600,000 apps have the Flurry SDK, which are installed on 1.6 billion devices, if Yahoo can get even a small percentage of these apps to add in monetization via Flurry, it could deliver strong returns.

Mobile and Display

Yahoo reported mobile revenues of US $254 million during the quarter, up from US $200 million in the same period last year and a 23% sequential growth rate. This “Transformative Group,” according to Yahoo, that mobile is part of, along with social, video and other products, has produced US $380 million during the quarter.

Yahoo’s display ad revenues continued to decrease in the Q4 of 2014, down 4% to US$532 million compared to same period in 2013. Total revenues for the quarter, excluding traffic acquisition costs, were US$1.2 billion.Native ads contributed US$100 million in revenue, a 20% increase. Both new ad formats and better targeting were key factor to that increase, boosting the price-per-click.While programmatic ads, contributed to the overall drop of 4% in its display ad business.

In addition, Ads sold increased 17%, while the price per ad decreased 20%.

Search revenue came to US $467 million, with a single percent. Search has been a key revenue source for the company as its deal with Microsoft’s Bing technology, a growing driver of the company’s top line.

Alibaba spin-off

Separately, Yahoo announced its plans for a tax-free spin off of its remaining, multi-billion dollar Alibaba Group stock holdings, which account for the majority of Yahoo’s value, into a newly formed company.

Following the spin-off, the Alibaba stake will become part of a new publicly-traded holding company called SpinCo, which will absorb all of Yahoo’s 384 million Alibaba shares, worth US$40 billion and later distribute them in a pro-rata formula to Yahoo shareholders.

The move will safeguard Yahoo shareholders from the immense taxes they would’ve paid through an outright sale of the assets. Still, Yahoo will continue to operate its core business and hold its 35.5% interest in Yahoo Japan.

In a conference call with investors, Mayer said the spin-off would save shareholders nearly US$16 billion in taxes. The transaction “maximizes value for shareholders,” she said.SpinCo will own a 15.4% stake in Alibaba.

Investors should focus on Yahoo’s efforts in mobile, native, social and video

descargaMayer suggested investors should focus on Yahoo’s efforts in mobile, native, social and video, the fast-growing areas in digital advertising that she wants Yahoo to be a part of.

“Our investment businesses – mobile, video, native, and social – collectively delivered more than US$1.1 billion in GAAP revenue [in full-year 2014], up 95% year-over-year. These growth drivers have really focused our investments and energy on the future of digital advertising.”

“I’m pleased to report that our performance in Q4 and in 2014 continues to show stability in our core business,” she added. “Our mobile strategy and focus has transformed Yahoo and yielded significant results.”

 

descargaCarolina Rivera, who previously worked as Pan Regional Advertising Online Sales Lead at Microsoft Advertising, has joined Yahoo’s panregional team also as Pan Regional Sales Lead. She will report to Henry Zamarripa,  Regional Sales Director-Latam & Emerging Markets.

Prior to Microsoft Advertising, Rivera worked at Televisa Publishing and Digital as US Hispanics and International Sales Manager for almost six years.In 2005, she joined Grupo de Diarios América as Vice president of Sales. She was also Account Executive at Yahoo Inc.

What: Yahoo released its Q4 2014 earnings report, posting revenues of US$1.18 billion and earnings of 30 cents, and a 6% decline in revenues versus the same period of 2013. Mobile revenues showed a 23% sequential growth rate to US $254 million while display ad revenues  were down 4% to US$532 million. In addittion, Ads sold increased 17%, while the price per ad decreased 20%.
Why it matters: Yahoo’s CEO Marissa Mayer said the company has plans to spin off its stake in Alibaba Group, which will result in a tax-free distribution to its investors, in an effort to revamp its slumping business.She also suggested investors should focus on Yahoo’s growth in mobile, native, social and video, a segment that, albeit less than 30% of overall revenues is growing at a high rate.

3fab1a175e2a87010f23435e0aea0f61_400x400Yahoo reported its fourth-quarter financial performance, including full-year revenue but excluding traffic acquisition costs of US $4.618 billion and full-year adjusted EBITDA of US $1.362 billion.

The company posted net revenues of US$1.18 billion and earnings of 30 cents. This means it almost missed what was estimated, sepecially with Wall Street expecting Yahoo to earn 29 cents per share with US $1.19 billion in revenue.Yahoo´s overall revenue fell 6 % in the last three months of the year and company’s shares were down 3.7 percent at US $36.82 in after-hours trading.

Yahoo’s plans to leverage Flurry’s developer connections to launch a mobile ad network.

Yahoo’s CEO Marissa Mayer said the company has plans to spin off its stake in Alibaba Group, which will result in a tax-free distribution to its investors.

Mayer also commented on Yahoo’s plans to leverage Flurry’s developer connections to launch a mobile ad network. As almost 600,000 apps have the Flurry SDK, which are installed on 1.6 billion devices, if Yahoo can get even a small percentage of these apps to add in monetization via Flurry, it could deliver strong returns.

Mobile and Display

Yahoo reported mobile revenues of US $254 million during the quarter, up from US $200 million in the same period last year and a 23% sequential growth rate. This “Transformative Group,” according to Yahoo, that mobile is part of, along with social, video and other products, has produced US $380 million during the quarter.

Yahoo’s display ad revenues continued to decrease in the Q4 of 2014, down 4% to US$532 million compared to same period in 2013. Total revenues for the quarter, excluding traffic acquisition costs, were US$1.2 billion.Native ads contributed US$100 million in revenue, a 20% increase. Both new ad formats and better targeting were key factor to that increase, boosting the price-per-click.While programmatic ads, contributed to the overall drop of 4% in its display ad business.

In addition, Ads sold increased 17%, while the price per ad decreased 20%.

Search revenue came to US $467 million, with a single percent. Search has been a key revenue source for the company as its deal with Microsoft’s Bing technology, a growing driver of the company’s top line.

Alibaba spin-off

Separately, Yahoo announced its plans for a tax-free spin off of its remaining, multi-billion dollar Alibaba Group stock holdings, which account for the majority of Yahoo’s value, into a newly formed company.

Following the spin-off, the Alibaba stake will become part of a new publicly-traded holding company called SpinCo, which will absorb all of Yahoo’s 384 million Alibaba shares, worth US$40 billion and later distribute them in a pro-rata formula to Yahoo shareholders.

The move will safeguard Yahoo shareholders from the immense taxes they would’ve paid through an outright sale of the assets. Still, Yahoo will continue to operate its core business and hold its 35.5% interest in Yahoo Japan.

In a conference call with investors, Mayer said the spin-off would save shareholders nearly US$16 billion in taxes. The transaction “maximizes value for shareholders,” she said.SpinCo will own a 15.4% stake in Alibaba.

Investors should focus on Yahoo’s efforts in mobile, native, social and video

descargaMayer suggested investors should focus on Yahoo’s efforts in mobile, native, social and video, the fast-growing areas in digital advertising that she wants Yahoo to be a part of.

“Our investment businesses – mobile, video, native, and social – collectively delivered more than US$1.1 billion in GAAP revenue [in full-year 2014], up 95% year-over-year. These growth drivers have really focused our investments and energy on the future of digital advertising.”

“I’m pleased to report that our performance in Q4 and in 2014 continues to show stability in our core business,” she added. “Our mobile strategy and focus has transformed Yahoo and yielded significant results.”

 

What: Yahoo has confirmed the acquisition of company BrightRoll for US $640 million in cash .
Why it matters: This a major move after a not so sucsessful acquition of Tumblr last year.Specially, when online video advertising is growing at a brisk pace and expected to reach US $6 billion  in 2014.The deal could turn Yahoo’s video ad platform “the largest in the U.S.” Yahoo’s Brightroll acquisition follows AOL’s acquisition of Adap.TV, Facebook’s acquisition of LiveRail, as well other acquisitions by Google to gain clout in the online video serving and online video advertising markets.

MJKpIG5V_400x400Yahoo has confirmed it will acquire video ad company BrightRoll for US $640 million in cash, turning the company into a big player in the growing online video market. Last month we already reported that the deal was  in the making. 

handshake behind a corporative building.Great for any design.The acquisition was announced on Tuesday and is Yahoo CEO Marissa Mayer most expensive acquisitions after it acquired Tumblr for US$1 billion last year. Unlike Tumblr, Brightroll is already profitable with US $100 million in revenues and 2 billion ad requests each day.

The deal will combine Yahoo’s premium ad inventory and data with BrightRoll’s programmatic video ad marketplace. BrightRoll will continue working with non-Yahoo publishers and the 400-plus BrightRoll team will be joining Yahoo, Mashable reports.

According to Marissa Mayer, video is one of the company’s key growth areas (along with mobile, social and native advertising), and this acquisition will make Yahoo’s video ad platform “the largest in the U.S.”

 Video is one of the company’s key growth areas , and this acquisition will make Yahoo’s video ad platform “the largest in the U.S”

“Video, along with mobile, social, and native, is driving a surge in digital advertising. Here at Yahoo, video is one of the largest growth opportunities, and BrightRoll is a terrific, strategic and financially compelling fit for our video advertising business,” Mayer said in a press release.

Hogging the video business

The video category is one of the fastest-growing segments of online advertising. eMarketer expects nearly US $6 billion to be spent in the U.S. in 2014 and that amount to be doubled by 2016. .

The move, could be seen as Brightroll’s response to AOL’s purchase of Adap.tv, a similar company that focuses on digital video advertising.

BrightRoll was founded in 2006 by Tod Sacerdoti who is still its CEO. The company has raised US $40 million in funding from investors including Adams Street Partners, Scale Venture Partners, Comerica Bank, True Ventures, Trident Capital, KPG Ventures, Michael Tanne, Fabrice Grinda, Auren Hoffman and Jeff Clavier, according to CrunchBase.

Mayer has been criticized for spending over US$1 billion in the Tumblr acquisition last year. Some observers say the deal is not paying off.  But Meyer expects Tumblr to become a U $100 million business for Yahoo next year.