Yahoo Buys the Rest of Rightmedia.com $680 mm
http://blogs.zdnet.com/micro-markets/?p=616
Don't get me wrong.. it's a fine purchase.. My only question is the valuation. How long a multiple is that?.. and domains are expensive!?.. Sheesh.
A long time ago I heard a Yahoo exec espouse that the biggest problem with paid search in general is lack of inventory. The rebirth of banner advertising might just be what a lot of us thought was coming: Less advertising sold for more money.. or the same advertising, priced to reflect its ability to brand, 'as well as' convert. Expect less middlemen in the future, or middlemen making less money.
Related story re: Google / DoubleClick here
Yahoo's "lack of inventory" is caused by their lame system for advertisers. As an advertiser I have 10 times larger ad inventory in Adwords than in Yahoo simply because Google offers very easy yet sofisticated panel for making campaigns. And in Adwords I do not need to wait days for approval for a new ad but it works immediately.
Posted by: TMfor | May 01, 2007 at 01:56 AM