Yahoo! reported yesterday that it has seen doubled profits in advertising areas, mainly from increased online advertising and offline advertisers. There has been a recent surge from major search engines competing in online advertising and better searching functionality, and Yahoo! is definitely showing that it is doing some things right in its advancements with new features like Yahoo! Video searching and the new beta Yahoo! News. This article documents the major growth:
Yahoo! doubled its profits in the first quarter, while seeing growth across all advertising areas.
Yahoo! reported earnings of $205 million today, on revenues of $1.17 billion for the first quarter of 2005, compared with net income of $101 million on revenues of $758 million in the year-ago quarter. Marketing services revenue rose 54 percent to $1,025 million for the quarter, representing all but $149 million of total revenue.
According to Terry Semel, Yahoo!’s chairman and CEO, the company’s financial success, and its appeal to advertisers, are both driven by its ability to extend its reach to new users while deepening its relationship with existing ones.
“While early Internet success was driven by sheer numbers, the next generation will be driven by depth of relationships,” Semel said. “We are the industry leader because of our reach and our relationships with advertisers’ key audiences, our unique targeting capabilities, vertical industry expertise, and the ability to provide effective consumer insight that can be turned into actionable marketing campaigns.”
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