Reason to Believe Yahoo's Advertising Rates Will Recover

Tue, 04/05/2011 - 16:15 EDT - Seeking Alpha

Trefis
YHOO

Trefis submits:
Revenue per page view is a key metric in the online advertising industry, in which Yahoo (NASDAQ:YHOO) competes with Google (NASDAQ:GOOG), Facebook, Microsoft (NASDAQ:MSFT) and AOL (NYSE:AOL). As these companies drive new traffic to their sites, they look for opportunities to demand higher advertising rates. While Yahoo continues to lose share in the online advertising market, [1] a broader shift in marketing dollars to the online space, coupled with an emphasis on more engaging content (like videos), could lift advertisement rates for Yahoo.

We currently maintain a $17.88 price estimate for Yahoo stock, which is about 5% above market price.
Advertising Dollars Moving Online
We expect online advertising to continue to take share from traditional media like TV, newspapers, and radio. With that, we also anticipate that advertisers will consolidate their marketing around big companies like Google and Yahoo, which provide them with unmatched scale and higher visibility.
Yahoo’s IncreasedComplete Story »

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Reason to Believe Yahoo's Advertising Rates Will Recover

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