Sign up to receive 5 free days of our daily summary for tech news.

As Revenue Stagnates, Yahoo Bets on Homegrown Ad Tech

Two years into the Marissa Mayer reign at Yahoo, the Internet pioneer is still struggling to find a comprehensive strategy for its core online advertising business. A new effort to build an ad exchange with in-house technology could mark a turning point for Yahoo, but it’s not yet clear if the long-troubled company can make it work.

Unlike its rivals, Yahoo has for years focused on super-premium display advertising on Yahoo-branded sites, shunning the industry-wide shift toward automated ad exchanges that can serve up targeted ads across the thousands of websites.

In January, Ms. Mayer signaled that was changing with the announcement of Yahoo Advertising, which includes an ad exchange designed to tap into deep wells of user data to help advertisers find customers all across the Internet.  

No subscription? You're missing out.

Join the high-powered community of tech and business leaders who rely on The Information's original news and in-depth reporting.

In previous interviews, Yahoo executives have tried to push their new advertising products as a giant managed service, one that can entice advertisers to run campaigns through its marketplace not only for its superior technology and returns but also its ease of use in the complex online advertising world.

That’s of course assuming Yahoo’s technology is any better than that of its rivals.

Login or Subscribe to follow the discussions happening here and real-time in our   Slack Community.
Read comments from top tech and industry leaders
Joe Lonsdale
Joe Lonsdale
Founding Partner, Eight
Chamath Palihapitiya
Chamath Palihapitiya
Founder & Managing Partner, SocialCapital
Tina Sharkey
Tina Sharkey
CEO, Brandless
Jonah Peretti
Jonah Peretti
CEO, Buzzfeed
Adam D'Angelo
Adam D'Angelo
CEO, Quora
Brit Morin
Brit Morin
Founder & CEO, Brit + CO
Dustin Moskovitz
Dustin Moskovitz
Co-Founder, Asana
Christina Miller
Christina Miller
President & General Manager, Turner
Max Levchin
Max Levchin
CEO, Affirm
Adam Mosseri
Adam Mosseri
Director of Product, Facebook
Alex Mather
Alex Mather
The Athletic
Martha Josephson
Martha Josephson
Partner, Egon Zehnder
James Murdoch
James Murdoch
Co-Chief Operating Officer, 21st Century Fox
Andrew Kortina
Andrew Kortina
Founder, Venmo
Ben Chestnut
Ben Chestnut
Co-Founder & CEO, Mailchimp
Ruchi Sanghvi
Ruchi Sanghvi
VP Operations, Dropbox
Yahoo tried to fortify its ad tech two years ago when it was deep in negotiations to buy supply-side ad exchange Rubicon Project, according to a source with knowledge of the discussions. The deal fell through for reasons that are not clear.