Holly Becker
Holly Becker
advertising company cost effective integral major marketing mix online prove
Yahoo! is embarking on a major transformation. The company must now prove that online advertising is cost effective and integral to the marketing mix of traditional advertisers.
appears cautious front growth low recent remain revenue rich several shares stock
Even after the recent decline, the stock appears rich at 36 times 2001 revenue and 150 times earnings. We remain cautious on Yahoo! shares in front of several potentially low single-digit growth quarters.
advertising budgets calling company cost dollars effective expectation integral marketing mix months nine online pouring prove research six turning
The company must now prove that online advertising is cost effective and integral to the marketing mix of traditional advertisers. There is an expectation that after six to nine months of calling on traditional advertisers, dollars will come pouring in. Our research suggests that turning 'toe-dipping' budgets into real dollars may take over two years.
ad believe difficult evolve model online prove remain until volatile
We believe Yahoo! will remain volatile until it can prove that its online ad model can evolve in this new, more difficult environment.