Yahoo's Purchase Signals Growing Value of Content
Combining our world-class editorial team with Associated Content’s makes this a game-changer,” said Yahoo CEO Carol Bartz in a statement. “Together, we’ll create more content around what we know our users care about, and open up new and creative avenues for advertisers to engage with consumers across our network.
Yahoo's purchase of AC is smart move on a couple levels and verifies that the value of content is on the rise. Sure it wants to complete in the high-volume, low-cost content game with AOL and Demand Media, but it also realizes that to compete you can't staff-create your way to the content levels you need to be at.
Partnerships, acquisitions and tapping UGC are ways they can complement their professional content with new content / ad inventory in their most profitable channels. They don't have to use all of AC's content on Yahoo, just the best, and it comes at a much cheaper production cost than staff-generated content -- which means a higher margin on those pages.
Comments [0]