Yahoo Sign Advertising Deal with Google As Revenues Fall 8.3% in Third Quarter

Yahoo reported their financial earnings for the third quarter of 2015. Its revenue was unable to reach expected analyst average prediction of $1.26 billion earning and only capable to earn $1,23 billion from sales. This is a 8.3 per cent decline as analyst expected on Yahoo's gross revenue.

Marissa Mayer who took the helm of Yahoo since 2012 faces a bigger challenges following the result. As a former vice president of Google search, she should have understood better about risk of Internet business. Although, in her first daring move as a Yahoo CEO, she determined to acquire Tumblr, a micro blogging platform for a stunning $1.1 billion in 2013. Such move did not produce a fruitful result since Twitter as Tumblr's competitors goes strong. Afterward, series of acquisition followed, including purchasing 15% shares of Alibaba, Chinese e-Commerce company. There are numeous decisions made by Mayer to boost company's progress have not made a positive impact as expected.

Moreover, a lot of issues have arisen in Yahoo under Marissa Mayer. One of the most alarming is exodus of high profile executives. In a recent week before the announcement of this quarter revenue, Yahoo development head Jackie Reses and marketing partnerships head Lisa Licht had left the Sunnyvale headquarter. Previously, Chief Marketing Officer Kathy Savitt and Senior Vice President Mike Kerns had left Yahoo as reported by Recode.net

On top of that, this year's third quarter result of Yahoo revenue have given a serious warning to Yahoo and Marissa Mayer at the helm. Bloomberg mentioned that this quarter sales was the biggest drop in quarterly sales for Yahoo since 2009

In order to take corrective measures, Mayer ask her former colleagues in Google for a helping hand. Yahoo and Google has reaced an agreement this week in search advertising. In the agreement, Google will supply Yahoo with advertising on web and mobile search. The advertising will be given along with search queries made by users in Yahoo. According to CNBC report, Marissa Mayer is optimistic about prospect of the agreement that she said will boost Yahoo's search business. Currently, Yahoo relies on Microsoft Bing to provide search services. Mayer expected that another collaboration with Google will strengthen Yahoo search business.

Although there are doubts about effectiveness of the strategy to combine triple search technologies from Microsoft, Google and Yahoo's own technology. Such strategy may not boost Yahoo revenue as expected, for the main issue relies on the changes of search technology landscape. The changes which have to be dealt with Yahoo's own technology, rather than expecting technology help from either Microsoft or Googgle. A focused and careful strategy is needed to provide a feasible plan for Yahoo.