It might seem impossible, but it’s true. Google and Yahoo! will collaborate in the search field.
Marissa Mayer (CEO of Yahoo!) announced the agreement yesterday in the evening at the investor conference during which she commented on the results obtained during the third quarter of 2015 by the US multinational.
The CEO of Yahoo! explained taht the pact signed with Google will last for three years. It covers the search traffic in the US and in some of the key international markets where the company operates. The agreement covers both desktop and mobile search and is no way exclusive.
Pragmatic agreement, on the heels of that with Microsoft
The pact with Google follows the contract signed with Microsoft in latest April, also in the search field. According to Mayer, the collaboration with Microsoft is already producing interesting outcomes in this chapter, an area that of the search, in which the CEO of Yahoo! sees many growth opportunities for her company, although the price per click has dropped in the third quarter by a 2%.
The fact is that the increased volume in clicks during this period has offset the decline in the unit price. Yahoo! has announced growth in total click revenues and volume in 3rdQ 2015 at a 3% and 5% respectively.
Mayer underscored as well that mobile search is an area for investment and development of critical importance for the company.
Something easy to understand if one take into account that 600 million users of the 1Bn Yahoo has, access the services provided by the company, specially the browser and Yahoo! e-mail, from mobile devices.
Operating losses for the third quarter in a row
The agreement with Google is just one of the changes in the business of Yahoo in which the CEO of Yahoo! puts her confidence for future revenues and profit growth although the outcomes of current the investments should no be expected immediately, but in the future, Mayer emphasizes.
The signing of agreements for the generation and distribution of premium content; the first foot on electronic commerce by acquiring Polivore; the new Yahoo! mail app or improvements in the Gemini platform, all of them they have required substantial investments.
Despite the increase in revenue from business lines as native advertising, programmatic platforms (DSP BrightRoll and the BrightRoll Exchange for premium inventory), native advertising for apps, etc, the necessary investments have been and will be huge and will surely reduce the operating income. Yahoo! continues to show in the third quarter of this year negative growth in this chapter amounting to – $ 86 million. Yahoo! entered into operating loss in the first quarter of 2015 (- $ 87 million) and also posted losses in the second quarter (- $ 45 million).
Yahoo! will keep on cutting jobs
The CEO of Yahoo! has also announced that the company will continue its downsize process in the human resources field and focusing on some new hires with technological sales profiles.
At the end of the third quarter of 2015 the company had 10,700 employees and 800 partners. This figures mean a 14% and a 32% cut respectively, compared with 2014.
They were unveiled other plans for rationalization during the investors conference: Yahoo! might even make some divestment or leave some less profitable geographic markets by 2016.
Image over the headline.- Marissa Mayer at the investors conference, where she explained the results posted by Yahoo! in 3rdQ 2015.
