Did You Know?
Yahoo's quarterly earnings soared more than sixfold, as it benefited from a big investment gain and a continued surge in online advertising. The online media giant's second-quarter profit was $755 million, or 51 cents a share, compared with $113 million, or 8 cents, in the same quarter a year ago.
Yahoo's revenue hurtled 51% to $1.3 billion. Minus the commissions Yahoo pays other Web sites in its ad network, its revenue was $875 million, slightly below analyst forecasts of $882 million.
The number that should jump out to you here is that Yahoo paid the difference between 1.3 Billion and $875 million to Web sites in their ad-network. This means that Yahoo paid other websites in its ad network 475 million to help them serve up your targeted keywords.
Leaving aside the so-called "traffic acquisition costs" that the company pays to other websites to generate an audience for its search engine advertising, Yahoo said that its revenues in the second quarter rose to $875m.
Yahoo Comments:
Terry Semel, chairman and chief executive officer, said both forms of online advertising on which the company depends - search engine ads and "branded" messages - had risen strongly in the quarter, with branded advertising continuing to grow at a faster rate than the overall market. |
