Yahoo! shareholders they are dying to know why the company’s quarterly results were below expectations. Apparently, Real Time Bidding (RTB), technology for purchasing real-time advertising space, may be to blame for the company’s falling advertising prices, and the resulting result.
RTBs are ads bought and sold at automated online auctions. They are designed to find advertising inventories at the lowest available prices, and therefore lower the average advertising value of companies. In this case, from Yahoo !.
Two market analysts questioned Marissa Mayer, the company’s president, about the effect of RTB, according to information from the Business Insider. The executive agreed that the purchase of advertising in real time is having a negative impact on the company’s business and said that it will change strategies to reverse the trend.
“We can do something better. This will be a clear goal for us,” he commented.
However, for B. Riley analyst Sammet Sinha, the change in RTB will not be easy and, much less, quick. He believes that Yahoo! you can have another full year without any revenue growth until the purchase of ads again offers money to the company.
Yahoo! ‘S financial results did not meet shareholder expectations. The figures for the second fiscal quarter of 2013 point to a slight reduction in revenues, despite the increase in profits.
During the last three months, which ended on June 30, the company had revenues of US $ 1.1 billion, which represents a decrease of 7% compared to the same period last year, and profited US $ 137 million, an increase of 150% compared to 2012.
The company highlighted declines in revenues in the company’s advertising area, where the value fell by 12% from one year to the next, and in the search sector, where the amount collected fell by 9%. As positives, the company highlighted “the acceleration of the pace of innovation”, with the launch of new products and services for various platforms.
The company’s shares, which closed the day at a low of 1.68%, suffered another drop during the after-market of about 1.45%, being exchanged at $ 26.45.
To learn more about Yahoo! ‘S business, read here a story that reveals the main contributions of the president, Marissa Mayer, in her first year at the company.