Should Yahoo Invest More In Building Great Software Than Advertising?

Its no surprise that Yahoo's ship is in trouble. The company that used to be 'GREAT' is now falling behind and finding it difficult to compete with the new rivals.

I remember the days when I'd turn to Yahoo to search. But then Google jumped in and offered simplistic approach to search. Google's search results were faster than any other search engine and also very relevant to what I was searching for.

But now, Yahoo is trying to compete with Google (and we cannot forget Bing!) by heavily investing in advertising. Yahoo's new #-Link-Snipped-# reflects it.

What do you think? Should Yahoo invest more in building great software, great search, great services or spend lot of money in advertising their current features?

Replies

  • silverscorpion
    silverscorpion
    Well, trying to beat someone as mighty as google by using nothing but advertisements is pretty clumsy.
    If great services are provided, the services automatically become famous and there'll be no need for advertisements.

    So, the area to be concentrated is the technical part,i., the services provided, optimization of code etc..
  • durga ch
    durga ch
    I somewhere recollect, this was the deal between MS -Yahoo . that yahoo concentrate more on ad content/
  • A SudhaKar
    A SudhaKar
    I appreciate the speed yahoo takes to load the big dump page.

    But as i noticed this move, it clearly says. Years they were failing on dvpt. and started despoiling their yahoo trademark by blasting which they could not make with a simple box.

    Make sure iam not a lover of Google as well. Just noticed it.
  • optimystix
    optimystix
    durga
    I somewhere recollect, this was the deal between MS -Yahoo . that yahoo concentrate more on ad content/
    yes, as far as i remember, the deal was about MS-Yahoo search engine collaboration. MS would focus on developing the search engine using Yahoo's technical experience and Yahoo would, in the meantime, focus on its other products and services.

    Unlike Google, whose main revenue comes from search engine, Yahoo focuses a lot more on its other services and products. Yahoo has been earning a lot from online advertisement,which has been one of its biggest source of income in the past few years. It is pretty clear that beating Google in the search engine arena would be difficult and thus Yahoo is spending their time and money on other areas where they specialize and can easily capture the market. That does not mean that they have given up to Google in the search engine business(remember the MS-Yahoo deal again ?). It's just a different marketing strategy they are following.

    MS on the other hand is getting desperate over things with no innovative product coming out of their stable in the recent years. Everything has its cycle , I believe and it is time for Yahoo to lie low for sometime until it bounces back.
  • Saandeep Sreerambatla
    Saandeep Sreerambatla
    I think yes ,Yahoo should do some innovation!!

    If that happens then it can beat or atleast compete with its rivals easily.
  • gohm
    gohm
    Anyone know how much Yahoo is spending on advertising and how much their competitors are spending?
  • Gurjeet Singh
    Gurjeet Singh
    ya yahoo has to do some further research in its searching algo and to way find out the best possible filtered result.

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