Yahoo might see significant growth for the first time in years, with analysts predicting net ad revenues rising by 3.2 percent to a total of $3.28 billion for 2013.
Ad and marketing research firm eMarketer is also forecasting growth in Yahoo’s search marketing revenues: up by 7 percent to $1.23 billion for 2013.
When it comes to display ads, Yahoo has actually been posting negative numbers in years past. eMarketer expects that to turn around for the first time in 2013, with Yahoo posting one percent display revenue growth this year and increasing that growth to four percent by 2015.
Granted, the online and search ad market is growing at a greater rate than Yahoo’s gains, and companies like Google and Facebook are posting truly killer year-over-year numbers. All this means that while Yahoo’s bottom-line numbers will grow, its share of the domestic online ad market will decrease, shrinking to just 6.2 percent. For contrast, Google claims more than 72 percent of the total online ad spend in the United States.
But as eMarketer points out, 2012 was the first time in several years that Yahoo posted such revenue gains at all, and that trend continuing through 2013 is a very good sign.
“eMarketer … remains bullish about Yahoo!’s display business and expects growth in 2013 and 2014 as the company removes clutter and increases prices with higher-quality inventory,” a rep stated via email.
In terms of display ad revenue, eMarketer expects newcomers like Twitter to post dwindling returns while Yahoo makes a slow but steady comeback and Google continues to hold steady at around 35 percent growth year-over-year for the foreseeable future.
Other signs Yahoo is staging a comeback: a string of splashy acquisitions (the Dailymotion buyout, the Jybe acquihire, and then Summly) , a new data center and added jobs, and CEO Marissa Mayer’s zero-tolerance policy on WFH slackers, underperforming mobile apps, and cluttered homepages.
Overall, Yahoo’s stock price has gone up around 48 percent since Mayer took the CEO’s seat and is currently trading at $23.54:
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