2008: Yahoo's year to forget

Looking at the online giant's performance over the year

With Y OS, Yahoo pledges to open all its sites, online services and Web applications to outside developers, and give users a "social profile" dashboard to unify and manage their Yahoo services. Yet, Li faults Yahoo's leaders for taking too long to articulate that strategy: Y OS was announced in late April.

Meanwhile, Google continues dominating search, and its position continues to strengthen, at the expense of Yahoo and Microsoft.

In the third quarter of 2008, Google nabbed 28.4 percent of all online ad spending in the U.S., up from 25.4 percent in the same period in 2007, according to IDC.

By comparison, Yahoo had 12.5 percent in 2008's third quarter, down from 13.3 percent, while Microsoft's share increased slightly to 6.7 percent from 6.1 percent in 2007's third quarter, according to IDC.

In the search segment specifically, Google's share of spending has increased from 50 percent to 54 percent in this year's third quarter, while Yahoo's has dropped from 14 percent to 13 percent. Microsoft also saw a decline of 1 percentage point to 6 percent.

In display advertising, Yahoo's forte, the company has been unable to build on its leadership position, with its share falling 1 percentage point to 16 percent year-on-year in 2008's third quarter. Microsoft held on to second place and improved its share to 12 percent, up from 9 percent. Google, a nonentity traditionally in this segment, grew its share from 1 percent to 3 percent.

Looking ahead at 2009, Li sees in Yahoo a company with many valuable assets but with a management culture that needs a shakeup.

"Can Yahoo become much more flexible and fluid? It has a chance, though it's going to be very hard," Li said.

"My goodness, any company would love to have their user base and their technology," Li added. "Yahoo needs to get out of its own way."

Join the PC World newsletter!

Error: Please check your email address.

Tags Yahoo

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Juan Carlos Perez

IDG News Service
Show Comments

Most Popular Reviews

Latest News Articles


PCW Evaluation Team

Azadeh Williams

HP OfficeJet Pro 8730

A smarter way to print for busy small business owners, combining speedy printing with scanning and copying, making it easier to produce high quality documents and images at a touch of a button.

Andrew Grant

HP OfficeJet Pro 8730

I've had a multifunction printer in the office going on 10 years now. It was a neat bit of kit back in the day -- print, copy, scan, fax -- when printing over WiFi felt a bit like magic. It’s seen better days though and an upgrade’s well overdue. This HP OfficeJet Pro 8730 looks like it ticks all the same boxes: print, copy, scan, and fax. (Really? Does anyone fax anything any more? I guess it's good to know the facility’s there, just in case.) Printing over WiFi is more-or- less standard these days.

Ed Dawson

HP OfficeJet Pro 8730

As a freelance writer who is always on the go, I like my technology to be both efficient and effective so I can do my job well. The HP OfficeJet Pro 8730 Inkjet Printer ticks all the boxes in terms of form factor, performance and user interface.

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Aysha Strobbe

Windows 10 / HP Spectre x360

Ultimately, I think the Windows 10 environment is excellent for me as it caters for so many different uses. The inclusion of the Xbox app is also great for when you need some downtime too!

Mark Escubio

Windows 10 / Lenovo Yoga 910

For me, the Xbox Play Anywhere is a great new feature as it allows you to play your current Xbox games with higher resolutions and better graphics without forking out extra cash for another copy. Although available titles are still scarce, but I’m sure it will grow in time.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?