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Yahoo to Buy Ad Company Right Media
Right Media runs online ad exchange
phranque




msg:3326034
 10:29 am on Apr 30, 2007 (gmt 0)

from ny times [nytimes.com]:
Yahoo plans to acquire Right Media, a privately held company that runs an advertising marketplace, in part to bolster its position as a seller and broker of ads outside its own sprawling network of Web sites, the companies’ chief executives said yesterday.

Yahoo, which bought a 20 percent stake in Right Media last October, will pay approximately $680 million, in equal parts of stock and cash, for the remaining interest in the company, which is based in New York.

“The acquisition, to us, is a key step toward executing our long-term vision to build the leading advertising and publisher ecosystem both on and off the Yahoo network,” Terry S. Semel, Yahoo’s chief executive, said in an interview. The deal is to be announced today and is expected to close in three months.


 

yodokame




msg:3326090
 12:21 pm on Apr 30, 2007 (gmt 0)

I spent some time at their web site, and I still have no clue #*$! it is that they do.

The first thing Yahoo needs to do is fire all the marketingspeak idiots on staff.

Gian04




msg:3326096
 12:31 pm on Apr 30, 2007 (gmt 0)

I think the best thing for them to do instead on buying an ad company is to rollout YPN to international publishers

bts111




msg:3326101
 12:36 pm on Apr 30, 2007 (gmt 0)

I agree Gian04!

Compworld




msg:3326114
 12:49 pm on Apr 30, 2007 (gmt 0)

This has to be the dumbest move Semel could make. They really need new leadership.

testing0




msg:3326125
 1:01 pm on Apr 30, 2007 (gmt 0)

honestly never heard of such a company as "Right Media"

Whith deals like this a company like yahoo which was once a leader in virtual world gonna shrink!

If yahoo really wanna compete with Google then it should really go International!

wyweb




msg:3326169
 1:36 pm on Apr 30, 2007 (gmt 0)

YPN go international? They're faced with numerous problems right now... dwindling ad inventory as advertisers bail out in favor of more attractive (read positive ROI) advertising solutions.. vastly inferior ad targeting which in itself is singlehandedly driving publishers away (read the YPN forum) and spooking advertisers away from the content network.. EPC that varies as much as 150% for the same ads on different days...

And going international will fix this? Hundreds and probably even thousands of publishers who've previously been banned by adsense for fraud clicks now getting a second chance to stick it to someone.. anyone... Yeah, that'll fix it for sure...

That's funny....

glitterball




msg:3326179
 1:50 pm on Apr 30, 2007 (gmt 0)

Interesting points.
If they did go international, why would a publisher switch to a network with less advertisers bidding and therefore lower value clicks? - Unless the publisher had already been banned from Adsense.

Still, the longer they wait to go International, the more unassailable Google's lead will become.

Januuski




msg:3326319
 3:28 pm on Apr 30, 2007 (gmt 0)

honestly never heard of such a company as "Right Media"

One that's gaining traction is New York-based Right Media. Founder Mike Walrath spent three years at online ad pioneer Double-Click, from the end of the boom into the bust, and ultimately deduced that the system for buying and selling online advertising was a mess: There was plenty of space available and plenty of demand, but there was no structure to connect them. Plus, he kept hearing complaints that Google's auction system wasn't transparent enough.

So Walrath built an exchange, called RMX, that's become a kind of eBay for display-ad inventory. Bidders specify their audience and Right Media's system predicts where the ads will work best. The software matches them with sellers in a fraction of a second and serves up the ad; Right Media takes an 8 percent cut.

Business took off so fast it almost killed the company. The exchange launched in April 2005 with a few small ad networks and a handful of ad buyers. By the fall the number of impressions traded on the exchange had soared to 20 billion a month.

Full story from CNN: [money.cnn.com...]

bakedjake




msg:3326408
 4:40 pm on Apr 30, 2007 (gmt 0)

This has to be the dumbest move Semel could make.

Others would say that buying instead of building is exactly what Yahoo should be doing right now.

FridayNight




msg:3326481
 5:35 pm on Apr 30, 2007 (gmt 0)

i really dont understand why Yahoo! doesnt cover international publishers. they have been watching google for years and they still act so conservative.

how the hell could they earn same amount of money by covering only usa/uk/au/can? no way... i guess they arent very good at math.

justageek




msg:3326535
 6:21 pm on Apr 30, 2007 (gmt 0)

This is just a move to counter the Google/DoubleClick deal. Not a bad one either. DoubleClick is just no rolling out their marketplace and Right Media has had theirs for a while so I would imagine there would be less bugs in it. Seems like a bargain compared to the 3.1 billion for DoubleClick even though it's not quite apples to apples.

JAG

tictoc




msg:3326863
 11:49 pm on Apr 30, 2007 (gmt 0)

I am glad to see they finally negotiated a deal. I still think they need a facebook type social network...

Olney




msg:3327004
 2:58 am on May 1, 2007 (gmt 0)

Yahoo is already pretty international
Advertisers in Japan usually spend 2 to 3 times as much on Yahoo! Japan than Google Japan.
Google doesn't dominate every market.
Overture Korea also gets most of the ad budget in Korea...

Gian04




msg:3327076
 5:15 am on May 1, 2007 (gmt 0)

Yahoo is already pretty international

Yes we all know that Yahoo is already international, What we are asking is for them to roll out YPN to international publishers, because currently its only for US-publishers.

Are you with us, Olney?

With regards to the issues that they dont have enough advertisers, targetting, etc, I think these things will improve when they go out of beta

[edited by: Gian04 at 5:21 am (utc) on May 1, 2007]

Olney




msg:3327131
 7:08 am on May 1, 2007 (gmt 0)

Since Overture was still a separate company here in Japan & Korea it might have been hard. Only last week Yahoo! Japan became the parent company of Overture (It's still Overture here & Korea). The system is now just being upgraded to Panama here too.

I think & hope an international Publishing system will come soon, but most likely only after these upgrades.

bennyp




msg:3327627
 5:32 pm on May 1, 2007 (gmt 0)

Maybe I'm just ignorant to the advertising networks, but what is Right Media?

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