Markets: Current Problems with Targeted Advertising
Current targeted advertising methods are far from perfect.
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Both Yahoo! and Google display a mix of relevant and irrelevant adverstisements for various search terms including:
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Google currently has an advantage over Yahoo! in targeted advertising:
- Google is estimated to generate US annualized revenues of $12.28 per user compared to only $8.65 per user for Yahoo sites
- “We are not monetizing as well and it is costing us a lot of money”, - former Yahoo Chairman, Terry Semel
- “Yahoo is destined to fall further behind in its technology race with Google” - JP Morgan Securities Analyst, Imran Khan
Sources: JP Morgan Securities; Yahoo; Morgan Stanley US Internet Advertising Outlook, 2006-2010E Report