Yahoo scraps mail ads in emerging markets

Getting rid of advertisements may not sound like a recipe to grow a Web business, but it’s one tack Yahoo is taking under new CEO Carol Bartz.

At a two-day staff powwow last week, Yahoo management decided to stop serving ads on its popular Yahoo Mail product in certain emerging markets in order to improve the experience for people with slow Internet connections.

The decision, which Bartz relayed to employees in her weekly memo last week, is intended to stem a loss of market share that Yahoo Mail believes it is experiencing in certain emerging market countries.

The move appears to be among one of the early nips and tucks the new CEO is making to Yahoo as she appraises the various aspects of the business and crafts a broader turnaround plan.

And it struck at least one analyst as a good sign.

Holding on to existing users is vital for any Web business, says Sanford Bernstein analyst Jeffrey Lindsay. A company can always figure out how to make money off the users later.

Yahoo’s Bartz sees growth abroad – memo

Since Carol Bartz took over as Yahoo CEO last month, analysts and investors have busily speculated about her still undefined strategy to mend the Internet company.

Bartz, the former chief executive of electronic design software firm Autodesk, has offered few clues about her thinking,

In a memo to Yahoo employees last Friday, Bartz tipped her hand about one area she is bullish about: emerging markets.