Holly Becker Marketing Quotations

Yahoo! is embarking on a major transformation. The company must now prove that online advertising is cost effective and integral to the marketing mix of traditional advertisers.

While they have made impressive progress, we believe that the sales cycle can be as long as two years given the inertia inherent in many large marketing organizations.

The tone of the conference call was quite cautious. Coupled with a revised outlook on sales and marketing expenditures, it suggests that a re-acceleration of revenue growth will only come at the cost of earnings.

The company must now prove that online advertising is cost effective and integral to the marketing mix of traditional advertisers. There is an expectation that after six to nine months of calling on traditional advertisers, dollars will come pouring in. Our research suggests that turning 'toe-dipping' budgets into real dollars may take over two years.