Yahoo Pumps In $1bn To Take On Google
The coming quarters may be significant for Yahoo in many ways. The technology giant reportedly invested $1 billion in 2013 on product development to strengthen its media, news and entertainment offerings to serve advertisers and consumers, to compete with its rival Google. The California-headquartered company is likely to see the fruit of its efforts from this year on, it says in a statement.
When CEO Marissa Mayer joined the firm in 2012 to revive its declining fortunes, she informed that the company is on its way to “re-imagining” its core businesses across search, communications, media and video. Since then, Yahoo has also been continuously launching upgraded and scales product and features to satisfy the changing demands of users, publishers and advertisers. Moreover, the company went on an acquisition spree, acquiring as many as 28 start-ups last year, to increase the number of customers especially in the mobile space.
The firm said in a US SEC filing that the product development expenses increased from $919 million in 2011 to and $1 billion 2013. Yahoo informed that most of the software products and features are developed internally by the employees, it added. “Our engineering and production teams are primarily located in our Sunnyvale, California, headquarters, Bangalore, India and Beijing, China,” the firm said in a the filing.
The company is increasingly seeing a chunk of its user base going mobile, and aims to develop compelling ads integrated with information and news. The company will be “building products focusing on mobile first” according to the statement, adding that mobile traffic represents more than half of its 800 million monthly users. However, the numbers do not include Internet Message Access Protocol or Tumblr users.
The company said increasing mobile traffic has been the result of an “engaging and inspiring suite of new and revamped product experiences designed to make users’ daily habits mobile.”
In a report last year, Mayer had also mentioned that Yahoo will continue to work in the area of personalization with numerous technology acquisitions that are currently being integrated into Yahoo’s offerings both online and mobile.
Experts believe that Mayer’s plans to smarten up Yahoo’s ad products by integrating mobile and desktop products can prove to be beneficial for the company in the long run. Moreover, these efforts have given a very important position to both Mayor and Yahoo in the world of technology, believe experts.
With so many acquisitions, revamp and upgrades, industry watchers are waiting to see how the technology giant can take on arch-rivals Google and Facebook in the months to come.
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