Tuesday, Oct. 20- Yahoo is making efforts to raise its sales. The search company has reported a minimal increase in its sales over the previous month. To deal with the situation, Yahoo has announced that it has signed an advertising deal with Google Inc. which owns what many know to be the most widely-used internet browser in the world.
According to a Market Watch report, the deal works with Google providing Yahoo with search advertisements in both mobile and desktop platforms. In the agreement, Yahoo can send any number of search queries to the Mountain View giant, and is not obligated to provide a minimum number of search queries. The two companies will then be paying each other. Google will be paying Yahoo parts of the ad revenues, while Yahoo will be paying fees to Google for image search results or web algorithmic search results.
The deal between the two companies will still be reviewed by the Justice Department. In April this year, Yahoo has reported revenues that fall short of market estimates. The company has reported a US$1.226 billion revenue, while analysts estimate falls on US$1.256 billion. Traffic acquisition costs have also increased greatly as the company has begun paying its partners more money for ads. From US$54 million, the amount has jumped into US$223 million in the past few quarters.
The deal with Google is seen as a bright spot for Yahoo, a development that marks chief executive Marissa Meyer's fourth year in the company. It is also seen as one of Meyer's efforts to improve the company's performance in terms of sales. Meyer said in a Reuters report that the figures Yahoo has come up with are "not indicative of the results we want".
Adding to that, she also divulged that the company is still facing some challenges. The company has reported a loss of US$76 million, putting share price at only 8 cents. Previously, Yahoo has had a price of US$6.7 a share, boosted by sales of Chinese e-commerce company, Alibaba. "We are also experiencing continued revenue headwinds in our core (advertising) business, especially in the legacy portions," Meyer added.
