Yahoo! ad revenue dip 13% as it unveils new homepage

Yahoo! reported ad revenues dipped 13% in the second quarter but says that “innovative” products such as the launch of its new home page will ensure growth in the long-term.


Revenues dropped to $1.6bn (£980m) in the three months to 30 June, from $1.8bn (£1.1bn) in the same period last year with the company citing the “the challenging economic environment”.

Advertising revenue from owned and operated sites slipped 16% to $858m (£525m), hit by a 15% decline in search advertising and a 14% drop in display revenues, while affiliate revenue declined 9% to $520m (£318m). 

The decline in revenues helped push operating income down 25% to $101m (£62m).

Carol Bartz, chief executive officer, says it is “confident” the company will achieve growth and profitability long term. 

“Our new homepage is a perfect example of our efforts to create innovative products aimed at increasing user engagement while offering the most compelling advertising proposition in the industry,” she says. 

Yahoo! is to launch its overhauled home page in the UK later this week, with an emphasis on the ability to add third-party sites.

Its strategy to open up its homepage to popular websites is being dubbed as both “bold” and “massively significant” by observers, if it can convince consumers and advertisers that it is the new “content hub”.

In the most significant change it has made to its homepage since 2006, Yahoo! will allow users to access content from across the web on sites such as eBay, Facebook and Twitter, under a customised My Favourites section.

When the user hovers their mouse over the application it will pop up and allow them into that site. Significantly for advertisers, new ad inventory will be available for them to buy within that application.

Damian Mitchell, Glue head of development says the effect will be that a lot of people will stay on the Yahoo! homepage longer and for an advertiser, this “is a dream”.

“It’s massively significant and is quite a bold step to allow users to configure and install apps on their homepage,” he says.

Vizeum MD Grant Millar, adds that the industry is experiencing another stage in the on going “arms race” between the major online platforms to become the definitive aggregation point for all web services and content.

“Google via iGoogle is already an established player in this field. Yahoo! will be hoping to bring all of their current users with them and win more along the way,” he says.

The development comes as AOL chief executive, Tim Armstrong, also announced plans to overhaul its strategy in a bid to claw back market share from rivals Google, Microsoft and Yahoo!

He is expected to reveal a move to grow editorial and video content, while reducing the volume of ads served per page.

Meanwhile, speculation persists that Yahoo! is set to sign a search advertising deal with Microsoft.

Latest from Marketing Week


Access Marketing Week’s wealth of insight, analysis and opinion that will help you do your job better.

Register and receive the best content from the only UK title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

Register now


Our award winning editorial team (PPA Digital Brand of the Year) ask the big questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.


From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we are your guide.


Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Having problems?

Contact us on +44 (0)20 7292 3703 or email

If you are looking for our Jobs site, please click here