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Yahoo! Paid Inclusion Drops
July 6, 2004
Yahoo! took a hit with their Paid
Inclusion program losing revenue from previous months.
Yahoo! has taken a lot of heat over their Paid Inclusion
when other search engines have either avoided it (Google)
or abandoned it (Ask Jeeves, MSN). But Yahoo! did post
a very healthy quarter, doubling their revenue from
last year. Here's a breakdown of Yahoo's various revenue
generators:
• Marketing services: The business line, which encompasses the company's advertising
revenue, posted $691 million, up from $635 million the
previous quarter and $219 million a year ago. The results
include revenue from Yahoo's acquisition of Overture,
whose highly lucrative paid search business accounted
for the bulk of this quarter's gains. The company did
not break out how much of this revenue came from paid
search and how much came from display advertising.
• Fees: Revenue
from Yahoo's paid services businesses jumped to $104
million from $88 million last quarter and $70 million
last year. Bulk paid subscriptions reached 6.4 million
from 5.8 million last quarter and 3.5 million a year
ago. Executives attributed the revenue difference to
a price increase for SBC Communications' dial-up customers
who also use Yahoo's services.
• Listings: This
business, which largely consists of Yahoo's HotJobs
subsidiary, reported $38 million in revenue. That's
up from $34 million last quarter and $32 million a year
ago.
Yahoo also offered a glimpse of its
new home page
design, which emphasizes its search engine and simplifies
its layout. The company is testing a number of designs
and soliciting feedback for its eventual launch later
this year.
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