Yahoo’s Answer to its Display Ad Problems: Integrate with Facebook
Acknowledging the ever-increasing presence of social media and content on the web, Yahoo (NASDAQ:YHOO) is trying to increase its user engagement by integrating its Yahoo News with Facebook. Visitors will be able to share the articles they are reading on Yahoo News with their Facebook friends, which is part of a growing trend on the way we consume and refer information. [1] Yahoo’s online advertising has struggled in recent years as search giant Google (NASDAQ:GOOG) has gobbled up market share in search and Facebook in display ads.
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We currently have a price estimate of $17 for Yahoo’s stock, which is about 15% above the current market price.
Move Can Provide Some Respite to Declining Page Views per User
Given the fact that Yahoo has limited networking or sharing tools at its disposal, this looks like a desperate move by Yahoo considering that Facebook is its biggest competitor in the online display advertising market.
However, user engagement on Yahoo is steadily declining as the time spent by an average user on Yahoo Sites dwindles and so this move could be more of a necessity than an operational one given the current trend for social. [2]
See our full analysis for Yahoo
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