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I began working for Google in , at a time when the two tech giants were competing vigorously to dominate the rapidly growing territory of World Wide Web. So many factors influenced the ultimate outcome, but one in particular — the way Google and Yahoo differed in their approach to core infrastructure — seems especially telling. At the beginning of the new millennium, Google and Yahoo started down very different paths to attain the enormous scale that the growing size and demands of the Internet economy search, email, maps, etc.
For Yahoo, the solution came in the form of NetApp filers, which allowed the company to add server space at a dizzying rate. But in nearby Mountain View, Google began work on engineering its own software-defined infrastructure, ultimately known as the Google File System, which would function as a platform that could serve a diverse range of use cases for all the services Google would offer as part of its future ecosystem.
Advertisers can choose to buy space on Yahoo sites through Verizon Media's supply side platform SSP , which is more profitable for Yahoo, or on third party demand site platforms DSP , which is more efficient for advertisers and less profitable for Yahoo. While it is difficult to determine Yahoo's financial performance from Verizon's financial statements, it does seem that "engagement" with Yahoo sites is working for Verizon, just not nearly as well as the company had hoped.
Most of this revenue increase is attributable to the influx of advertising dollars Verizon Media now collects from Yahoo sites. Google currently dominates the market, but it is losing ground to Facebook and Amazon. As a result, Verizon's current marketshare in digital ads is currently only 2. As it stands, Yahoo, and Verizon Media broadly, are still money makers for Verizon, but just barely. Although the digital ad industry is booming in terms of volume, Verizon's decreasing market share doesn't bode well for the company's future in the space.
Verizon Media is undergoing significant changes in an attempt to save itself. The company is planning on launching a whopping 20 new products in the next six months. Yahoo Finance and Yahoo Mail play big roles in this strategy.
The hope is to boost Yahoo's profitability by better integrating the brand with Verizon's other products and by launching subscription-based services for premium content on Yahoo's most popular site, Yahoo Finance. Verizon Media is currently undergoing a complete overhaul. Yahoo plays a central role in this reconfiguration. In June , Yahoo Finance launched a subscription service called Yahoo Finance Premium that provides investors with premium content. These include premium data and charting, advanced portfolio analytics, research reports and investment ideas, and company profiles.
The site also allows investors to link their pre-existing eTrade accounts to their Yahoo Finance account. Although the service has already launched, some of these features are still being fully fleshed out. Yahoo has also just launched an updated version of the Yahoo Mail app, which they call a "super-app.
In doing this, Yahoo is betting on users who are already faithful to Yahoo. This set-up could offer some insulation from the fierce competition with Google, Facebook, and Amazon. In November of , Verizon Media launched a creative studio with immersive media company RYOT to create branded augmented reality AR , virtual reality VR and degree video content with corporate partners.
It is perhaps Verizon's most futuristic and exciting subsidiary. RYOT will also offer partners access to its software development kit, which makes the creation of VR and AR content more cost effective. This studio also serves a flashy, modern project that integrates Verizon's upcoming launch of its 5G network. This network will be integrated into all of Verizon Media's products to raise their speeds.
The RYOT studio is designed to show off what such speeds can do, and to encourage users to consume the studio's data-intensive content using Verizon devices and apps. Like all digital media companies, Verizon Media and Yahoo are currently doing all they can to weather growing instability in the industry.
As already outlined above, Yahoo and Verizon Media are facing a lot of challenges. Here's a recap. Marketing Land. CNN Business. Company Profiles. Business Essentials. Actively scan device characteristics for identification.
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