Wednesday, May 2, 2007

Yahoo acquires Right Media

Yahoo has just announced it plans to merge with Right Media Exchange at a cost of only 680 million dollars. "The acquisition of Right Media will further Yahoo!'s goal to create the industry's most open, accessible and vibrant advertising marketplace, which will help democratize the buying and selling of digitally enabled advertising," said Terry Semel, chairman and CEO of Yahoo!" By merging with Right Media, Yahoo! hopes to compete with Google as the leading search engine and information provider. The article says, "The Right Media Exchange is the industry's largest emerging online advertising exchange, and as publishers increasingly turn to exchanges to monetize their ad inventory, this acquisition will help Yahoo! establish a leading position in this large, attractive and fast growing segment of the online ad market." With this new combination Yahoo! hopes that the following will occur:

1.) Advertisers will have greater inventory and audience options from Yahoo! and other participants in this exchange, as well as increased control and visibility into the buying process.

2.) Publishers will be able to bundle their own ad inventory with Yahoo!'s inventory and the exchange's inventory - thereby boosting demand and generating the highest returns for each ad placement.

3.) Advertising networks will reap the same benefits as advertisers and publishers, and additionally, the exchange will benefit those ad networks with unique value propositions, giving them an opportunity to compete with the largest players, thanks to reduced friction and increased transparency.

4.) For Yahoo!, this more open approach will allow the company to increase liquidity, allow advertisers to more efficiently ascertain the true value of display ad inventory, and generate greater returns for Yahoo!'s own display inventory. It will give Yahoo! a new channel and inventory for excess demand and provide an opportunity to derive more value from non-premium inventory.

It will be interesting to see where Yahoo! ends up in the months to come and what kinds of new and innovative ideas we will be getting from this new merger.

1 comment:

Unknown said...

Such a nice update. I do not know how you guys gather these information and why don't I. I even read online news but cannot find any news like this. If I get news only after reading in the blogs otherwise not. Thanks again.