Yahoo’s head of display solutions recently spoke as part of a panel session at Starcom MediaVest Group’s Mobility conference. While speaking, he surprised many by saying, “…we anticipate a future where there are fewer ads.” In context, he is speaking about creating a system that provides more targeted, higher quality ads to the viewers. The more relevant and targeted the ads, he seems to believe, the fewer of them need to be displayed.
This is just one part of the overall mobile strategy of Yahoo. Since 2012 when then new CEO Marissa Mayer announced the ‘mobile-first’ approach, the company has made some significant changes. For example, the mobile department within Yahoo had just 12 people prior to Mayer’s arrival. That number has now gone up to over 500 employees focused on this area. We often hear about companies giving lip service to a specific project, but not backing it with resources. Obviously, this is not the case with Yahoo.
Hugh also commented that, “It was clear to her [Mayer] and the company that the shift from desktop to mobile was happening. It was an irreversible trend. There was a need for us to become mobile first.” Through a process of internal development and the acquisition of other companies, Yahoo has become a major player in the mobile environment.
Today, Yahoo is looking to revolutionize the mobile ad market by providing personalized advertisements that are far more relevant to the viewers than ever before. This will help drive higher click through rates, as well as command increased ad spend per click. For the users, it will also provide more value since they won’t be bombarded with unwanted advertisements. Those ads that they do see will be much more likely to peak their interest in a positive way.
While no specifics were given on how this adjustment will be made, or when, it is certainly something marketers will want to follow closely. If Yahoo can be successful with a more minimal approach to mobile ads, other companies may follow suit.
What do you think of this potential move? Share your thoughts in the comments below.
