Yahoo recently made it’s 18th acquisition since Marissa Mayer become CEO just one year ago. The company they purchased is a startup called Admovate, which focuses on mobile ad technology and is intended to assist Yahoo in expanding their mobile ad targeting capabilities. Many are beginning to relay skepticism of Yahoo’s many new acquisitions as their earnings reports show mixed results; however, the purchase of Admovate is a logical solution to their 11% drop in display ad revenue for the last quarter.
Admovate was formed in 2012 with the intention of developing mobile advertising technology that would allow for more “personalized, hyper-local targeted offers.” Amongst Yahoo’s other purchases, Admovate is unique because it is specifically focused on advertising rather than supplying a product to consumers. Advertising has been a main focus of Yahoo’s as they struggle to compete with Facebook and Google. Earlier this year, Yahoo reached a well known deal with Google in regard to global advertising. In addition, Yahoo runs the Right Media Exchange, which is a platform allowing digital ad companies to purchase ads.
Yahoo’s reported strategy with these acquisitions is to buy companies that already have talent and a specific goal rather than hiring new staff. However, Yahoo has also widely expanded their team of mobile engineers by hundreds of new employees. Yahoo is very clearly focusing on the potential that mobile platforms have to offer, and they are using new, innovative techniques to attempt to reach a better, more targeted audience.
The Potential of Mobile Platforms
Advertising on mobile platforms is an area with a lot of opportunity and much room for growth. As Marissa Mayer has stated, “Yahoo’s future is mobile, and we’re delivering our products mobile first.” Mobile advertising has specific advantages that should be explored for local businesses. With the hyper-local and personalized ad strategies that Admovate offers, local businesses can target their specific demographic by location. This will allow local businesses to promote themselves, for example, in results for mobile phone searches when a potential customer needs to find a certain service or product but does not know the area well. Unless you’ve been living under a rock, you know that mobile strategy is crucial for any business hoping to bring in new customers and target locally.
How has your local business used mobile advertising?
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