Yahoo CEO, Marissa Mayer, announced the Internet corporation’s new direction for advertising at CES, the Consumer Electronics Show, on January 7, 2014, during her keynote speech. Yahoo will be taking what they call a “unified approach to digital advertising,” which is intended to make buying ads across Yahoo’s platforms easier.
David Karp, CEO of Tumblr, which was acquired by Yahoo in May 2013 in a $1.1 billion deal, also took the stage to announce that the microblogging platform would also be integrated with the new Yahoo advertising scheme. Tumblr Sponsored Posts will now be powered by Yahoo Advertising and will allow for advertisers to finally use gender and location to target users. Tumblr advertisers will only be charged for ads that are rebloged, like, followed, or clicked directly from the Sponsored Post itself. They will also have access to Yahoo’s new analytics tools and will be able to narrow down their creative to the ads that are performing the best.
According to Tumblr’s announcement, 60% of users who have seen Sponsored Posts find them fun, engaging and high quality. Another 70% of consumers perceive a brand more favorably after seeing a Sponsored Post, and 50% researched the sponsor afterward.
As for Yahoo’s advertising overhaul, the company is rolling out new web, mobile and video ad products across native, audience and premium display, which will all be accessible through a new buying platform. Furthermore, the new products will be supported by Yahoo’s new data and analytics tools, which are meant to give advertisers insights into the digital habits of Yahoo’s 800 million users.
One of the new products, Yahoo Audience Ads, will allow advertisers to buy ads targeted to specific audiences. The service was previously known as “Genome,” and has been extended to combine Yahoo, advertiser and third party data resulting in a comprehensive set of audience data. The ads are delivered across Yahoo and other sites with the targeting precision that comes with real-time, data-driven ad buying. The new Audience Ads are meant to compliment Yahoo’s existing Yahoo Premium Ads.
The new buying platform is called Yahoo Ad Manager. All Yahoo’s advertising products are available on the platform including the new ones. Yahoo has simplified the user interface to help advertisers buy ads faster, and have built insights and analytics directly into the platform. To accommodate larger advertisers with complex digital ad campaigns, Yahoo Ad Manager Plus has been built as an extension of the standard service, and will be available later in the first quarter of 2014.
Yahoo will also be launching a global ad marketplace, the Yahoo Ad Exchange, in the first quarter of 2014. The new service is meant to provide publishers with more visibility and control over advertising on their sites. The Yahoo Ad Exchange will serve as an upgrade to the services provided by Right Media, with an enhanced platform that will feature payment clearing, advanced inventory and demand contorls and flexible private marketplaces.
Yahoo is an Internet corporation that helps people engage in their daily habits online. The company provides e-mail, search, photo sharing (Flikr) and media services to its users. Yahoo is headquartered in Sunnyvale, California, and has offices in 25 countries, provinces, and territories. Marissa Mayer became CEO in 2012.