Tough Days Ahead For Yahoo7

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The JV (joint venture) between Yahoo and Australia’s 7 network, Yahoo7 seems to have run into a bit of problem with personal moves, decline in traffic and bad advertising results.

Some of the major change in roles includes Mr. Markus Barnikel (head of strategy now) and Willie Pang who will now take over the business in Australia and Newzealand. In addition, Craig Wax has announced that he will head back to US after having a good stint in Yahoo Search Marketing.

News report by Australian IT says that there has been decrease in Yahoo7’s traffic from 5.5 million in January to 4.7 million in August. Similarly the advertising results have remained static inspite of the huge growth observed in sector.

It is believed the company’s estimated 10 per cent share of the online advertising market is not achieving expected growth. For the last year NineMSN has 26 per cent and Fairfax Digital has 17 per cent based on estimates.

Down-under has been dominated by Google which accounts for 80-85% share of the local market for the last couple of years. Apart from Google, Australia seems to be a good hunting ground for Microsoft. As stated above, Microsoft’s local arm NineMSN holds a 26% share in adbuying market place, way ahead of FairFax Digital.


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