Tuesday, October 17, 2006

Smart Move by Yahoo.

Today marks the 1st day in a long while, that I can actually say that Yahoo did something RIGHT.

They purchased a 20% stake in a company that I admire.

Right Media.

You see, I come from a internet company where data, optimization and most of all -- RESULTS matter.

That is what my team and I are building -- a company that delivers superior results for our clients.

News on Right Media & Yahoo.
"SAN FRANCISCO (MarketWatch) -- Yahoo Inc. on Tuesday announced investments into two online ad providers. It's buying a 20% stake in Right Media Inc. and its Right Media Exchange, which is used by thousands of companies to buy and sell online advertising through an auction process. The investment by Yahoo is part of a new $45 million round of financing into led by Yahoo, a new investor into the 3-year-old firm, and previous investors including Redpoint Ventures. Yahoo also announced it has entered into a definitive agreement to acquire AdInterax, which is used by online publishers to create and manage online ad campaigns. Financial terms of both deals were not disclosed."

Right Media has built a platform that allows for both publishers and advertisers to monetize their media. Publishers get to sell their space to the highest bidder, and advertisers get placement on sites that yield the best result.

Yahoo has made a solid move with this investment -- but more than the 20% stake they took in Right Media, they acknowledged a few key things that years ago, (or months ago) would not have happened.

1 - Yahoo's attitude of -- "we can build it here" is out the window.
(most of the systems that Y! employs are homegrown technologies -- and the internal bureacracy an mantra that existed of "if we did not build it here it does not exist" ideal is gone. Trust me , I know this from my own experience dealing with Y's operational folks)

2 - Yahoo's inventory -- "we are the best at monetizing our space." (well, I dont think so. Ad-serving, optimization and RESULTS based marketing practices have passed Yahoo by, and this investment sounds like a opportunity to gain a bit more of a understanding as to "WHAT MIGHT WORK" for Y's tremendous inventory)

3 - Yahoo's Class 2 Sales Group -- GREAT people, amazing service. But, clearly NOT armed to deliver the best way possible for the CPM's they are forced to ask for in the marketplace of internet media. (performanced based advertisers looking for ROI opportunities)

Today marks the first time (since the Overture acquistion) that Yahoo has responded in a SMART and targeted way, to a landscape of the media world -- passing them by.

Kudos to Yahoo for a smart investment.

Congrats to Right Media.


Blogger West Coast Probst said...

Andy - I work for Right Media and read a lot of press and opinion on this today. This post was my favorite.

Glad you see the value and potential of what we're trying to do.

2:07 AM  
Blogger rightbacktoyou said...

right media could be Yahoo!'s ad.com but how is a 20% interest going to achieve that?

12:26 PM  

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