According to Marissa Mayer, these advertisements could reach the $1.2 billion mark in 2014.
The CEO of Yahoo, Marissa Mayer, has finally now spoken about it’s the company’s mobile ads and has stated that their offerings have become “meaningful”, which is good news as a part of the top exec’s long delayed turnaround strategy.
That said, it remains far too early to know whether or not the strategy will work over the long term.
The third quarter earnings report has now been released by Yahoo, offering some hope to the company that has experienced a long series of quarters in which revenues have only continued to fall. Finally, this time, it experienced sales growth as well as a profit that was even higher than expected, driven by the rise in the sale of mobile ads. Mayer released a statement with regards to the third quarter performance in which it was explained that there was over $200 million in mobile revenues within the last quarter.
The mobile ads sales that have been brought in this year, so far, make up $1.2 billion at Yahoo.
The mobile revenues currently make up 17 percent of the company’s total revenues. That said, analysts have reported that for the full year, total revenues will be $4.3 billion, which means that the mobile ads sales will have made up over a quarter of that figure. In Mayer’s statement, she said that “We have invested deeply in mobile and we are seeing those investments pay off.” She added that “Not only are our mobile products attracting praise and engagement from users and industry awards, they are generating meaningful revenue for Yahoo.”
The company reported that it had experienced a profit of 52 cents per share, which was higher than had been anticipated. This was before the stock compensation cost and didn’t include the $6.3 billion in proceeds that it brought in from the sale of its Alibaba shares. It represented a massive rise from the same time last year, when it had been at 34 cents. Considering that Wall Street had predicted a profit of 30 cents, it is clear that the company performed far better than anticipated. Moreover, the revenues after having subtracted the payments made to its website partners for traffic increased by 1.5 percent to reach $1.09 billion. Analysts had been predicting a decline of 3 percent.
According to recent research, this is the type of advertising that will bring about the best results.
When it comes to the number of options for mobile ads that are currently available for brands and companies, there is certainly no shortage, but recent findings have found that some are more effective than others.
The research indicate that success rates vary greatly depending on the type of advertising that has been selected.
Many brands are, therefore, opting to focus not on a single type of mobile ads, but rather on the diversification of their efforts. This, despite the fact that social media marketing has been shown to be quite effective when it comes to communication with consumers over smartphones and tablets. The issue at the moment is that brands and companies know that this channel is a vital one, despite the fact that it is very new and involves a considerable degree of inconsistency.
The multibillion dollar industry surrounding mobile ads has yet to find a standard for itself.
The recent report on the research was published by Celtra, a mobile advertising company. It stated that the future of this channel will be in interactive advertisements, such as those that involve quick and entertaining games.
Matevz Klanjsek, the chief product officer at Celtra, said that “Gaming ads are advertisements that use gameplay and/or gamification mechanics as a core of their user experience,” adding that “Most often, these ads look like branded minigames served into an ad placement. They typically feature standard gaming elements, such as core gameplay, scores, leaderboards, and they often allow users to share their score/result on social media.”
Celtra, itself, is seeking to secure its position in this part of the industry through its own mobile gaming commercials that are designed to provide businesses and brands with a competitive edge. The goal of this type of mobile ads is to directly and rapidly increase the engagement and click through rates being generated by advertisements displayed over smartphones and tablets. The report came to the conclusion that the billions of dollars that are being spent on marketing has made it vitally important for companies to understand their next step. The data that they have presented shows that interactive will be their chosen path and they believe that the rest of the industry will choose “to follow its lead”.