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  • Devalued Content: Too Much or Too Much of the Same Things

    “People tell me that content is king, but that is not true at all,” says Rishad Tobaccowala, “Most people make money pointing to content, not creating, curating or collecting content.”

    It’s a simple rule of any market. The more information that is created, the more the value is reduced. And despite attempts to woo spending with bigger, bolder and more targeted ads, services that help consumers navigate that content, namely search, remain the big money makers online.

    “People tell me that content is king, but that is not true at all,” says Rishad Tobaccowala, chief strategy and innovation officer at Vivaki, the digital-media unit of Publicis Groupe SA. “Most people make money pointing to content, not creating, curating or collecting content.”

    Internet pioneers Yahoo and AOL Inc. are losing out to Facebook Inc. and Google Inc., both of which are adept at helping point the way to pertinent or interesting material. As a result, Yahoo and AOL are getting left behind in the fast-growing U.S. market for online advertising, which ballooned 20% to $31.3 billion from 2010 to 2011, according to eMarketer.

    Yahoo and AOL’s shares of the overall U.S. online advertising market will drop to 11% and 2.7% in 2011, respectively, according to the research from, down from 16.1% and 4.4% in 2009.

    Their businesses have been plagued by a range of missteps that extend far beyond their current regimes. Both were slow to recognize the appeal of social-networking and to update their once dominant email services to compete with new rivals.

    Excessive turnover and extensive bureaucracies have strained their relations with Madison Avenue, say advertising executives. Ms. Bartz recently attributed Yahoo’s weaker-than-expected ad sales to heavy turnover among advertising executives.

    Yahoo said in a statement that the company has been meeting with advertisers and agencies who say they excited by the advertising opportunities at the company. A spokesman for AOL declined to comment.

    The firing of Yahoo CEO Carol Bartz wasn’t triggered by one factor, but rather because she wasn’t reaching a series of performance targets, Emily Steel reports on the News Hub. Plus: why the Web content deluge had made Yahoo sink rather than swim.

    A few years ago, scale virtually guaranteed profits if Internet companies had relationships with marketers, as there were few sites that could deliver large audiences to advertisers. But advertisers now can turn to a wide range of competitors to reach a similar number of people, and that has pushed down the amount of money they spend on those sites and the price for ad rates on the portals.

    Read Full Article in the Wall Street Journal

    Good luck.

    Calvin Wilson
    Founder and CEO
    Upstart: Business and Management for 20-40 Year Old Professionals
    calvin.wilson1@verizon.net
    http://twitter.com/Upstart__Nation

    Filed Under: Tech/E-Commerce

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