Yahoo (NASDAQ:YHOO) Active Monthly Users Climb Above 800 Million
SAN FRANCISCO – On Wednesday, Yahoo CEO Marissa Mayer announced that TechCrunch Disrupt that Yahoo’s (NASDAQ:YHOO) active monthly users are up 20 percent to more than 800 million globally. While the traffic growth is a good sign for Yahoo, it is well behind Facebook’s (NASDAQ:FB) 665 million daily active users and Google’s near monopoly of internet traffic. According to Mayer the user totals did not include Tumblr, which Yahoo bought for $ 1 billion earlier this year.
Mayer went onto note that the reengineering of Yahoo may take ‘three years or more’ to complete. As part of the reengineering process, the company will focus on four main pillars: people, products, traffic, and revenue. Mayer went onto add that the company’s core products especially search and mail have seen significant growth and that these products are heavily used on mobile devices – the mobile team at Yahoo has grown tenfold since Mayer took over in 2012.
While there have been positive developments at Yahoo, the company has been unable to win over advertisers who are continuing to adjust their budgets to Google and Facebook. According to Emarketer, Yahoo’s share of the $ 17.5 billion display ads market slipped from 9.2 percent in 2012 to just under 8 percent this year while Facebook and Google now control 17 and 18 percent of the market respectively.
Since Mayer became the CEO of Yahoo, the company has acquired more than 19 companies including mobile application makers Stamped Inc., Jybe Inc., and Summly Ltd., the news-reading application created by teenager Nick D’Aloisio. However, the company does not have a true mobile ecosystem and this could be the weak link it is strategy and companies such as Google and Microsoft (NASDAQ:MSFT) are well positioned to deliver multi-platform experience for their users. However, investors like what they are seeing from Yahoo, for now, as shares in the company up more than 50 percent for the year, closing near its 52-week high on Friday.