Yahoo’s planned earnings release is being overshadowed by expectation of a major corporate reorganization and significant layoffs.
The increasing clamor for a new direction reflects Yahoo’s ebbing position in the worldwide advertising market. While its ad revenues are expected to go up, its share of the total is not, forcing it into a tighter corner of the market.
“Although they are growing, Yahoo’s so called MAVENS (mobile, video, native and social) businesses have not gathered enough momentum to turn around Yahoo’s advertising business, and we will continue to see the company’s market share decline in the near future,” said eMarketer senior forecasting analyst Martin Uteras.
In September 2015, eMarketer predicted Yahoo would capture $3.37 billion in worldwide net digital ad revenues, or 2.0% of the worldwide digital ad market. That was down slightly from $3.45 billion or a 2.4% share in 2014.
eMarketer forecast Yahoo would capture 2.1% of the $94.07 billion worldwide search market in 2016, according to eMarketer. That share will remain unchanged from 2015, but represents a drop from 2.5% in 2014. eMarketer ranks Yahoo fourth in the search ad market, behind Google, Baidu and Microsoft.
On the display side, Yahoo will have 2.0% of the $104.25 billion global market in 2016, eMarketer estimates, a slight rise from 1.9% in 2015. Facebook will again lead the global display market with 20.6% share in 2016, ahead of Google's 11.6% share.
When it comes to mobile internet advertising, Yahoo’s share slid to 1.5% in 2015, from 1.8% in 2014. Google was the worldwide mobile ad leader in 2015 with 33.7% share, while Facebook took 17.4%.