Yahoo’s Redesigned Web Pages Are Paying Off

by Trefis Team
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Yahoo! (NASDAQ: YHOO) surpassed Google to reclaim the top spot in web traffic with over 196 million unique visitors in the month of July. While this can be attributed to Yahoo’s push for personalized content, we believe that its redesigned homepage was a major contributor to the increase in web traffic.

Yahoo has announced that it is now extending these changes to seven of its websites, which includes Yahoo Sports and Yahoo Games, as well as TV, music, weather, movies, and Yahoo omg! Although, the impact of the redesign will manifest over the next few quarters, we believe that it can substantially increase user engagement over the long term and provide upside to our price estimate.

See our complete analysis of Yahoo! here

The New Design

The redesigned properties will imitate Yahoo’s homepage with personalized news and services. Staying with tradition, these properties will have news feed which initially lists out generic news content which changes according to the user’s click history and interests. Additionally, automatic personalization feature will allow users to specifically remove unappealing content from the front page of their stream. However, the functioning of the websites remains more or less the same so as to keep the usage consistent with older versions.

While the redesign aims to bring the user interface of Yahoo’s mobile websites in line with its native mobile apps, it also hopes to provide unified user experience across devices. [1] Overall, we think that these changes have the potential to positively impact Yahoo!’s page views per unique visitor. We currently forecast that page views per unique visitor will decline to 155 by the end of our forecast period. However, if the user engagement improves and the figure reaches around 190, there can be approximately 5% upside to our price estimate.

New Design Can Help Drive Ad Revenues

We think that the new design, which is consistent across different devices, could help drive the company’s revenue per page view (RPM). According to Comscore, Yahoo’s unique user count increased to 196 million in July. We attribute this growth to better user engagement and personalized content delivered on Yahoo’s home page. We believe that the company can leverage the user generated interest information to increase targeted ads across its sites. Since advertisers will be willing to pay for more such ads, we could see some upside to our RPM estimate.

At present we forecast that RPMs will remain flat at around $1.40 during our forecast period. However, if the redesign of these websites increases the company’s revenues per page view to $1.80 by the end of our forecast period, there can be 5% upside to our price estimate.

We currently have a $28 price estimate for Yahoo!, which is in line with the current market price.

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Notes:
  1. Bringing a refreshed Yahoo! to our global mobile web users on all devices, August 27 2013, yahoo.tumblr.com []
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  • commented 3 years ago
  • tags: GOOG YHOO FB AOL
  • I never use yahoo, although I do use their email about once a year.... yahoogroups have become a one big fat joke.... and they are gaining the market share? How in the world? Not from me! And I thought google was ugly....
    Yahoo Logo
  • commented 3 years ago
  • tags: GOOG YHOO FB AOL
  • Jokes on Yahoo... I have ad-blockers so I don't see ads and I never click on them anyway. YahooGroups is an unusable fu¢king mess.
    Yahoo Logo
  • commented 3 years ago
  • tags: GOOG YHOO FB AOL
  • This is NOT an answer nor a solution. Thousands of your customers who have been with you for year (15 years here) have written and posted and told you such: simply put our groups back the way they were and when they LOOKED great at one glance! This is what set Yahoo apart from other groups. Now it looks like total shit from a boring 8 year olds perspective and not only is it unappealing but it also doesn't work. I'm moving my groups to Google before I lose any more members.
    Yahoo Logo
  • commented 3 years ago
  • tags: GOOG YHOO FB AOL
  • Investors and advertising companies may want to check here... http://yahoo.uservoice.com/forums/209451 Does this look like a company getting ahead? The large amount of visits yahoo has been getting is from complaints across the board NOT congratulatory for a job well done. They took features that worked like clockwork and trashed them for totally non-functional , user unfriendly most likely untested garbage. Once everyone moves away from yahoo, investors will start to lose. If yahoo wants improvements, get rid of Marissa Mayer to start. No wonder Google let her go.
    Yahoo Logo
  • commented 3 years ago
  • tags: GOOG YHOO FB AOL
  • As a group owner and moderator of over 1000 members, I have no idea what is going on with Yahoo as they are not bothering to explain. There was no warning of this silent nuke of Neo which wrecked our group and continues to be dysfunctional and unusable for what our group needs, there is no explanation, there is no response to the 33,000 plus comments on ONE complaint among thousands on their feedback forum that actually addresses any concerns. Why has this been done? Are the groups in the process of being axed? Who knows. I can only conclude that current clients are being thrown to the wolves in the hope of attracting more lucrative younger clients away from facebook. Many corporations have gone down chasing new clients while betraying their existing client base.

    I read in the feedback forum the sentence again and again "deleted our group', and often those groups had thousands of members. I am not deleting our busy group, however as we can no longer trust Yahoo, have no idea what they intend and my members are furious at their behaviour and no longer wish to use them, we have created another forum elsewhere and once the high rate of complaints/ problems/ signposting members to the new forum drops off, our traffic will move almost entirely to the new forum.

    Yahoo Logo
  • commented 3 years ago
  • tags: GOOG YHOO FB AOL
  • Yahoo has now said up yours to a few group owners. They don't seem to get that the huge increase in traffic is ONLY because of the complaints, which will stop, if they really don't pout groups back - and so will the visits, as the groups migrate elsewhere. I already have my mail set to POP to my PC, to avoid looking at the email pages; I shall not be back to groups. No-one has posted to one of my groups since the change - until I posted a message suggesting coming here to tell investors what they think. Don't know if anyone will even see it, though - no-one is going there any more. Over half the members of my other main group have said they are leaving if things aren't put back. If I wanted to "network" on a crap imitation of fartbook, I would sign up there. I don't. Groups were different. Now they - aren't - and they are also unusable.
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  • commented 3 years ago
  • tags: GOOG YHOO FB AOL
  • My daily visits to Yahoo are all about hoping that the 'new' CEO has been sacked and that NEO has been consigned to history, and absolutely NOT because I want to use Yahoo right now.
    To ALL the shareholders and advertisers, you WILL loose out in the end.
    Marissa Mayer is treating users with utter disdain and totally ignoring the upswell in anger at the sudden, unannounced and totally UNTESTED totally flawed NEO.
    When Yahoo goes bust, the salutary lesson to be learned will be how NOT to treat loyal customers/users.
    Users WILL find alternative sources to run their groups from, and it's the shareholders who will see their investment in Yahoo become worthless.
    I for one am no longer recommending Yahoo to friends.
    I started using YahooMail from the start, but stopped using that service when ALL my accounts where either hacked into or hijacked due to abysmal security.
    The management at Yahoo obviously haven't learned their lesson about not upsetting users
    Geoff - Yahoo is history as far as I'm concerned, unless NEO goes!
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  • commented 3 years ago
  • tags: GOOG YHOO FB AOL
  • I have run a Yahoo! discussion group since they took over e-groups. Over the years, things have gotten worse and we've dealt with them. But this latest change? It's a disaster. And that's a compliment. Yahoo! had a good product with groups and they've ruined it.
    Yahoo Logo
  • commented 3 years ago
  • tags: GOOG YHOO FB AOL
  • The NEO format for Yahoo Groups is a massive FAIL. It is completely unusable, and my members have literally stopped posting. As group owner and moderator for three groups with a membership of over 7000 unique users, I will be moving my groups off of Yahoo ASAP if the Groups are not restored to the previous working version swiftly.
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  • commented 3 years ago
  • tags: GOOG YHOO FB AOL
  • Yahoo's design team has totally destroyed their group forums functionality with their new changes. No advertising revenue will result from groups that are no longer visited or able to be utilized. This quote from their advertising above is a complete lie.

    "However, the functioning of the websites remains more or less the same so as to keep the usage consistent with older versions."

    Utter nonsense - they have totally undone the functionality and utility of yahoo.groups. Just go look at the current feedback site for Yahoo groups. Beta testers are voting 33,000 to 45 to delete the neo version and go back to the previous yahoo groups format. The loss of functionality is pretty well evident by the complaints posted there and the calls to abandon the new format. Yahoo is being gutted from within. It is a house of empty cards that will collapse upon itself. Investors are being fed misleading information. Beware.

    JD
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  • commented 3 years ago
  • tags: GOOG YHOO FB AOL
  • Marissa Mayers, perhaps it's time to go to your customer base and ask us what WE would like to see. Allow us to provide feedback, and allow us to help you properly develop a better Yahoo Groups. In a Best Practice environment. If you have happy customers who are engaged and invested in your product, we'll stay. If we stay, we buy stuff from your advertisers. Who will also stay. Your profits go up, your stock goes up, and your investors stay. Again, this is not rocket science, but good, basic business practice. Time to go back to the drawing board, Marissa. Be the leader you claim to be, apologize to your customers, roll back the beta program, and start over. Do it right this time. We'll stand behind you, if you stand behind your customer.
    Yahoo Logo
  • commented 3 years ago
  • tags: GOOG YHOO FB AOL
  • Yahoo neo pages is not paying off.Hundreds of groups were deleted by their owners.I read that this mass exodus of a quarter of a million now former users is because of neo pagers.It also effects Yahoo email.
    Yahoo Logo
  • commented 3 years ago
  • tags: GOOG YHOO FB AOL
  • Don't know what you clowns are smoking. The new and "improved" neo groups format is just horrible. The group page picture is completely destroyed...either cropped completely or stretched out so as to look ridiculous. The messages are difficult to find and are slow to load. 30,000+ negative votes and counting.....
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  • commented 3 years ago
  • tags: GOOG YHOO FB AOL
  • Staying with tradition my foot. The only tradition Yahoo is staying with in regard to Groups is total disregard for the needs and wants of their subscribers. Blind people who have had neo inflicted on them without their permission or any prior notice given cannot read their groups even with the special equipment they use. The rest of us are just flabbergasted at the ruin Yahoo has made of our groups as they try to turn them into something 'modern' like Facebook. Good gods, if we wanted Facebook we'd be there.

    Groups are not social networks. They are generally devoted to a single topic which is of great and sometimes vital interest to the members. Posts are often lengthy. Imagine trying to type and edit one in a tiny window like "this one" you provide for comments thanks to neo. Imagine not being able to do 90% of the administrative tasks a group calls for if you are an owner or moderator.

    If this is Marissa Mayer's idea of creating a unique user experience, she's certainly been successful. It is uniquely and uniformly bad. If she believes advertisers will be attracted, she has another think coming. Ads on groups that no longer exist as people close them down thanks to this monstrosity known as 'neo' are hardly likely to generate much revenue.
    Yahoo Logo
  • commented 3 years ago
  • tags: GOOG YHOO FB AOL
  • This "Neo Yahoo Groups" change is just horrible... No warning, no notice was given to any of the group owner/moderators. One day it was "normal" and working great and the next... I can't get anything to work as before. If Yahoo really wanted to shoot itself in the foot and drive users of Yahoogroups away in droves, they couldn't have done a better thing. Probably the most stupid business move to make--changing something that wasn't "broke" to begin with! I'd take my money out of Yahoo stock now before they totally bankrupt themselves.
    Yahoo Logo
  • commented 3 years ago
  • tags: GOOG YHOO FB AOL
  • Several handicapped users are poised to flood the DOJ/ADA with formal complaints due to access issues they have with the NEO interface.Others,such as myself will,file a complaint on behalf of handicapped users.I personally ask Daniel Loeb and current investor to visit Yahoo.Read all the comments of your customers on the feedback forum and the Yahoo answers.Whats left as Yahoo users will thank you for your intervention.
    Yahoo Logo
  • commented 3 years ago
  • tags: GOOG YHOO FB AOL
  • It wasn't broke, but it is now!!!
    Yahoo Logo
  • commented 3 years ago
  • tags: GOOG YHOO FB AOL
  • Since the roll-out of Yahoo Groups Neo UI started on 7th August, the user backlash has been steadily rising. The current voting is 1000:1 against its adoption, but Yahoo is pushing on regardless. As a result, the number of groups that are closing is now also increasing, and on one forum at least, it is said that at least 700,000 members have been lost already ( http://yahoo.uservoice.com/forums/209451 )
    If this trend continues, Yahoo could well have shot themselves in the foot by prematurely releasing a poorly-tested and implemented 'upgrade'.
    Yahoo Logo
  • commented 3 years ago
  • tags: GOOG YHOO FB AOL
  • Hundreds of groups including mine were rendered useless by this worthless format.Including mine.Hundreds of groups with an estimate of 100,000 to 150,000 loyal Yahoo users no longer have a reason to visit Yahoo.I deleted my three groups as well.
    I have to question the Yahoo traffic of last month.I attribute this increase of traffic to the fact that current Yahoo members were scrambling to save their email account that Yahoo discontinued.Did you know that Yahoo has a price of $1.99 on a wish list to claim unused accounts? One of these accounts was from a serviceman Afghanistan.
    Yahoo was once a proud asset to the internet.Now its....................
    Yahoo Logo
  • commented 3 years ago
  • tags: GOOG YHOO FB AOL
  • You must be kidding. People are abandoning yahoo in droves over neo. Several hundreds of groups are gone, and that covers thousands of individuals. I know I shan't be back. I avoided facebook because it is like neo - now that yahoo may as well be facebook, I shall stick with forums where individuals have some control over what happens.
    Yahoo Logo
  • commented 3 years ago
  • tags: GOOG YHOO FB AOL
  • Paying off? Not likely - the owners and members of Yahoo Groups are furious with the forced change to this NEO format. It's a disaster and has little of the functionality upon which we've come to depend. Many of us are closing their groups and heading to Google Groups, Yuku, Constant Contact and many other alternatives. Yahoo screwed up big time with these changes and in time, you'll see the number of "unique visitors" begin to decline. All this was done with no warning, no introduction and no thought to how we use their services. We woke ip one morning and there is was. Yahoo has failed significantly and they will feel it over time.