Category: Yahoo! (YHOO)

The other day Scoble posted about how video blogs are superior to text and I disagreed. Well two days later he posts this gem about Yahoo!’s announcement today about slightly lower earnings due to lack of realization of projections and guidance. (Maybe they should take Progressive Insurance’s stance and not give guidance, now there is a positive idea!) Anyway, today, Scoble says banners are discretionary spending while text ads aren’t and Google is winning and will outperform in a recession….blah blah blah…well guess what there is a large home page ad from Ford on Yahoo’s home page right now as I write this. People are talking about this little change in guidance like Ford told Yahoo! to go get completely lost, that is *NOT* the case.

This particular analysis is way too simplistic and there is significant other information to consider:

1. Unless you work at Google in sales or finance (maybe PR like David Krane), you don’t have any idea how this has affected Google this quarter.

2. That Ford ad on Yahoo’s front page is a *branding* ad, a picture of an actual vehicle! Any SEM worth anything will tell you that getting people to see a text ad as good spend for branding is a hard sell.

3. The Auto industry adopted online advertising early in the game. Perhaps they are reaching a penetration point where further accelerated growth is not possible at the same level? To confirm this thought further, a senior Google person I know (who actually returns her phone calls – props to her!) that I met at ad:tech in July recently moved from, guess what the Auto sector to Consumer Package Goods shortly before I met her (her card still said Autos). Maybe Google analyzed these same facts and decided to redeploy a valuable asset, in this case a person, to a place where it woudl get higher ROI. Good for them.

4. I also know that Ford recently hired a SEO firm to do alot of work on alot of sites. Maybe it’s because they realize that SEO and not text ads frequently have a superior return? Hmmm.  

5. If text ads were the be all end all, why is Google launching radio and video ads?

6. UPDATE: Regarding financial services, this is all about the housing bust and no more “Own a $1.6 million dollar home for $99/month the first 4 years” text ads. I think this will affect everyone equally  in terms of earnings and hoepfully some of those types of ads will never return. 

So Robert which is it? Video and/or pictures or text?