Yahoo! has been struggling to post more meaningful growth in its topline and bottom line over the past few year. In the recently held developer’s conference in New York, Yahoo announced that it will enable mobile developers integrate native video ads into their apps as users. This move signifies that most users now use mobile devices to browse the Internet. Moreover, these users spend more time in apps installed on a mobile devices than on mobile browsers. As a result, monetizing that content has become imperative for companies such as Yahoo that are focusing on delivering content on a mobile platform.
On the supply side, user generated video content is on the rise due to a number of factors, including the proliferation of low cost but high quality video equipment, the increase in Internet penetration and bandwidth, and the low storage costs of online content. Additionally, premium video content is also growing because many traditional media companies are boosting their online presence to capture a shift of viewers moving online for streaming digital content. On the demand side, online video on demand content is becoming increasingly popular due to broader Internet access and the advent of smart connected devices (which include tablets, smartphones and notebook PCs).
Content is the driving force behind display ad revenue and affects both users and advertisers on Yahoo. Users care about the quality of content and personalized information, which together lead to better engagement. According to a report by Flurry, the time spent in the mobile browser is a rapidly shrinking part of that pie, with more than 90 percent of time spent in apps. And media consumption accounts for more than half of that app time. Yahoo is aiming to help developers to monetize their content by integrating native mobile video ads. These ads spots can then be offered on Flurry, which has an RTB platform called the Flurry marketplace that enables automated sales of ads across different ad properties. It plans to combine customized content by developers with bespoke ads to improve user experience.
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