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Yahoo Closes Content Match Network

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The one party digital state took a big step forward recently as Yahoo announced that they are closing their content match network in Europe. The announcement was dressed up with the usual PR spin about how they want to concentrate on their search network advertising. However, cynics might suggest that Yahoo’s reach is now so poor in Europe that they decided to withdraw due to a lack of interest from advertisers.

Overall, this is bad news for the European content advertising scene as well as for the various resellers who promote the Yahoo service. The erosion of choice in the contextual market means that publishers will find their margins increasingly under pressure. With the weaker players in the market continuing to contract there is a serious lack of choice now available to publishers. This means that their bargaining power is declining and the choice they have is between a low margin from the one network with good coverage or a high margin from a network with no advertisers.

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Written by digitalcut

February 8, 2009 at 5:48 pm