Report: Yahoo’s ad revenue to drop 14 percent this year

Yahoo’s ad revenues are forecasted to drop 14 percent this year while its competitors, including Google and Facebook, are expected to grow.

According to a new eMarketer report on ad spending, Yahoo’s global ad revenues will dip to $2.8 billion this year, down from $3.3 billion last year. Its overall share of the ad market will shrink from 2.1 percent to 1.5 percent.

That’s more bad news for the Marissa Mayer-led company. In an attempt to cut $400 million, Yahoo announced last month that it’s in the process of shuttering offices, slashing 15 percent of its workforce and is backing away from its once-ambitious content efforts by closing down a number of its verticals, like Travel and Autos. All of this is happening while rumors swirl that Yahoo is considering selling itself.

Moving forward, Yahoo is focusing on its growing mobile, video, native and social advertising unit called “MAVENs.” Mobile has been a spot of growth for Yahoo, with eMarketer expecting it to bring in $1.31 billion in revenue, a spike of 24.5 percent over last year.

“A leaner Yahoo, more focused on its core growing segments, will still face stiff competition in an ever more crowded and sophisticated market,” said eMarketer analyst Martín Utreras.

In contrast, the firm expects Google’s digital ad revenue to increase 9 percent to $10.23 billion and Facebook will increase 31 percent to $22.37 billion.

More in Media

YouTube is under fire again, this time over child protection

Adalytics Research asks, ‘Are YouTube advertisers inadvertently harvesting data from millions of children?’

Illustration of a puzzle that spells out the word 'media.'

Media Briefing: Publishers pump up per-subscriber revenue amid ad revenue declines

Publishers’ Q2 earnings reveal digital advertising is still in a tight spot, but digital subscriptions are picking up steam.

Lessons for AI from the ad-tech era: ‘We’re living in a memory-less world’

Experts reflect how the failures of social media and online advertising can help the industry improve the next era of innovation.