With fast declining search revenues and sluggish display ad growth, Yahoo (NASDAQ:YHOO) is attempting another bid to drive traffic to its sites. The company recently announced a partnership with PropertyGuru, the most popular real estate portal in South-East Asia. [1] The move stands to drive more unique visitors to Yahoo! sites – something the company is desperately in need of. Yahoo competes with other online advertising giants such as Google (NASDAQ:GOOG) in search and Facebook in display advertising.
We currently have a price estimate of $17 for Yahoo’s stock, which is about 30% above the current market price. Display ads constitute about 22% of our price estimate.
Yahoo Stands to Gain Over 17 Million Unique Visitors
According to the partnership, Yahoo and PropertyGuru would deliver premium property-related content to users in Singapore, Malaysia, Indonesia and Thailand. This would also give Yahoo an access to around 17 million monthly visitors across this region.
The partnership is also indicative of Yahoo’s future direction as the U.S. market has already seen Facebook surpassing Yahoo in display ad revenues (with the gap expected to widen in 2012). [2] Given these trends, we could see Yahoo trying to tap further into markets in Asia-Pacific to drive traffic.
See our full analysis for Yahoo
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