Yahoo! Inc. (NASDAQ:YHOO) is hosting its first-ever mobile developer conference on Thursday in San Francisco. Its President and CEO, Marissa Mayer, has said that when she had joined Yahoo! Inc. as its Chief Executive Officer in 2012, the mobile business was a hobby and no one’s job. Nowadays, she is working hard to change the course. She wants Yahoo! Inc. (NASDAQ:YHOO) to be thought of as a mobile trend-setter. Mark Mahaney of RBC Capital Markets offered his point of view to CNBC on why Yahoo! Inc. is holding such a conference.
“If you’re one of the leading Internet assets out there then you have to have a good mobile strategy. That’s why Yahoo has to host a mobile developer conference. It has to show that it has mobile chops, not only for consumers and advertisers, but also for developers,” Mahaney said.
It is expected that about 1,000 developers will attend Yahoo! Inc. (NASDAQ:YHOO)’s conference and so the CEO will need to impress them. She will have to bring out an impressive mobile strategy to win the confidence of developers in Yahoo! Inc. Yahoo! Inc. (NASDAQ:YHOO) has maintained a very strong earnings growth over the last few years and Marissa Mayer is dedicating lots of time, effort and resources to the mobile side of the business and there is also proof that her hard work is paying off. In the fourth quarter, Yahoo! Inc.’s mobile ad revenue climbed 23 percent up to $254 million and its mobile monthly active users were up to 575 million. Yahoo! Inc. has to do a lot more if it wants to be a leader in the mobile market however.
“Yahoo has had a lot of progress, but they still lag the industry in terms of mobile adoption and mobile revenue. They’re at about half of where they probably should be,” said Gene Munster of Piper Jaffray.
Yahoo! Inc. (NASDAQ:YHOO)’s potential to progress further has been forecasted by many industry experts. They think that Yahoo! Inc. could have been far ahead by now from where it is currently standing. It could have earned more through mobile revenue if it had considered mobile adoption earlier. According to research firm eMarketer, this year, Yahoo! Inc.’s mobile ad revenue will account for about 4% of the market in the U.S. as compared to 35% for Google Inc (NASDAQ:GOOGL) and 17% for Facebook Inc (NASDAQ:FB).
Yahoo! Inc. (NASDAQ:YHOO) also cut 125 jobs last week which makes 1% of the total workforce, stating that it constantly makes changes to better align its resources and investments with its strategic priorities. In January 2015, a tech site named “The Information”, also reported that Yahoo! Inc. will present a big mobile ad push to impress the developers. To be specific, Yahoo! Inc. (NASDAQ:YHOO) is expected to give a self-service platform to their advertisers that will let the advertisers place their ads on Yahoo apps as well as thousands of other apps that are using the Flurry network, which is a mobile analytics and advertising platform that Yahoo bought last year. According to the Analysts, this news might have no impact in the short term but it could have an impact over the long run as Yahoo! Inc. continues to grow its mobile audience.
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