spacerMarkets: Current Problems with Targeted Advertising
Current targeted advertising methods are far from perfect.

  • Both Yahoo! and Google display a mix of relevant and irrelevant adverstisements for various search terms including:
  • Google currently has an advantage over Yahoo! in targeted advertising:
    • Google is estimated to generate US annualized revenues of $12.28 per user compared to only $8.65 per user for Yahoo sites
    • “We are not monetizing as well and it is costing us a lot of money”, - former Yahoo Chairman, Terry Semel
    • “Yahoo is destined to fall further behind in its technology race with Google” - JP Morgan Securities Analyst, Imran Khan

Sources: JP Morgan Securities; Yahoo; Morgan Stanley US Internet Advertising Outlook, 2006-2010E Report