Yahoo’s Scott Thompson: Will Work Towards Generating Revenues From Fees And Commission, Pushing Away The Advertising Business

Posted on Feb 9 2012 - 1:38pm by Editorial Staff

Yahoo which in January announced its drop in revenue by 13 percent in its fourth quarter results of 2011 seen a first major hope-to-be turn back today when its newly appointed former PayPal employee Scott Thompson put out his initial plans by pushing the company away from its advertising prospectus and get more of its revenue from both fees and commissions, WSJ reports today.

The company’s online advertisement business accounts for about $3.4 billion or 78% of its net revenue. Yahoo also generated nearly $1 billion from transaction-related fees that it generates from its sites network.

When asked for his views about ad agencies, he said he prefers to be “as close to the customer as possible,” and that “I don’t like intermediaries that add no value,” the people familiar with the matter said.

While Mr. Thompson added that good intermediaries “can change the equation,” his comments surprised some attendees because ad agencies have previously clashed with Yahoo and other Internet companies that have tried to work directly with marketers, effectively cutting them out.

The premier digital company is seeing one loss to another since from a very long time – drop in revenue – Yahoo’s co-founder Jerry Yang resigned – Roy Bostock (Yahoo’s chairman), Vyomesh Joshi, Gary Wilson and Arthur Kern resigned.

In top of all eMarketer recently announced that by 2014, search revenues including Yahoo will account for 92.1% of all US search ad revenues and 44.3% of all US online ad revenues, up from just fewer than 90% of all search ad revenues and 43% of all US online ad revenues in 2011. Well now have to see how much Yahoo’s newly appointed CEO moves will work out to make it to the chart again.

(Image Source: Yahoo logo, Featured Image)

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Editorial Staff at I2Mag is a team of subject experts led by Karan Chopra.