Actually, Yahoo is not spending another $85 million on ads

May 6, 2010

The news that Yahoo is spending $75 million to $85 million on an ad blitz has provoked a wave of disparagement in the blogosphere, with many critics slamming Yahoo for throwing more money away on an ineffective marketing strategy.

But much of the outcry appears to stem from a misunderstanding.

YahooBannerThe $75 million to $85 million in advertising is actually part of the $100 million campaign that Yahoo announced in September; It does not represent an additional $75 million to $85 million in ad spending.

A Yahoo spokesperson confirmed that Yahoo has only spent between $15 million and $25 million on the “It’s You” ad campaign since it was rolled out in September, with the remainder of the $100 million budgeted for the new ads, which represent phase two of the campaign.

True, Yahoo has retained a different ad agency to lead the new campaign, swapping out Ogilvy & Mather for Goodby Silverstein & Partners.

And the ad efforts thus far have failed to revive Yahoo’s traffic. Since Yahoo introduced the ad campaign in September, the number of unique visitors in the U.S. to its online properties has declined 2.6 percent to 155.6 million in April, while total page views on its properties have declined 11.4 percent, according to comScore.

Google, Microsoft Corp and Facebook all posted increases in U.S. visitors and page views during the same period, comScore said.

Say what you will about the effectiveness of Yahoo’s marketing efforts, or the underlying wisdom of an Internet company spending $100 million on advertising in the first place.

But whatever the shortcomings, it’s clear that Yahoo is not suddenly pumping up its ad spending.

4 comments

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Whether it’s a new $75 mil or not…

Name another industry where a company spends $100 million with their direct competitors. Or an industry where companies accept money to promotes their competitor’s products to their loyal audience?

Just the media biz…websites that you are loyal to will be suggesting that you leave them to develop loyalty for Yahoo. I still have trouble wrapping my brain around that. TV networks that are fighting desperately to keep you in front of the TV will be encouraging you to head to your computer to check out Yahoo!. “Your favite stuff all in one place”. Not here on our network or on our network’s website….no, it’s over at Yahoo.

It’s like walking into McDonalds and having them tell you about flame broiled whoppers.

Not sure if I can post a blog link here, but more on this here
http://blog.gomper.com/

Posted by davesteinberger | Report as abusive

Yahoo’s slippage is not based on its advertising effectiveness. It’s based up its management being mired in the last century and believing that the site can still be a “portal” to the online world.

The public no longer knows what Yahoo is.

Mark Loundy
Twitter: MarkLoundy

Posted by MarkLoundy | Report as abusive

[...] Actually, Yahoo is not spending another $85 million on ads, Reuters [...]

Time for a brand name change!

Posted by HBC | Report as abusive

Part of the problem is that Yahoo’s marketing message is clear Orwellian doublespeak. It’s the Big Lie.

Yahoo says in their $100 million marketing campaign that “the internet is under new management, yours.” But at the same time Yahoo does not respect user data and their employees tweet out “I hate your freedom” as they destroy thousands of hours of user data that does not belong to them.

The internet, at least under Yahoo’s control, is very much *not* under our management. To make matters worse, yahoo routinely deletes accounts with zero recourse for the Yahoo user. Yahoo claims to have no mechanism to recover deleted accounts. Even accounts that may be deleted in error by their own staff.

These anti-consumer practices fly in the face of Yahoo’s claim to care about their users.

I’ve invited Ms. Steele and other Yahoo executives previously to discuss these matters and to discuss what Yahoo might actually do to empower their users and to truly make good on their so called commitment to user empowerment, but they have no interest. As long as this remains their attitude, no matter how much money they spend on multi-million dollar marketing campaigns, their message will ring false.

Posted by thomashawk | Report as abusive