Why Microsoft + Yahoo! makes sense – and why it won’t work

by Charlene Li

The New York Post and WSJ.com just came
out with stories
of a rumored merger between Yahoo! and Microsoft. On paper, the deal makes sense for the following
reasons, but in the end it's going to be so hard that I don't think it will happen.

First, let's take a look at why it makes sense:

- Audience
Yahoo! and Microsoft have two of the largest online audiences –
according to Nielsen//NetRatings, 108 million and 95 million respectively in the
US in March 2007. Google had slightly more uniques (108 million), but the
combined unduplicated audience for Yahoo! + Microsoft is 129 million.

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Yahoo! buys Right Media, a smart move to defend its online ad leadership

by Charlene Li

Yahoo! announced that it would buy the remaining 80% of Right Media that it doesn't already own for $650 million today. (NYTimes.com, WSJ.com and GigaOm also have coverage).

I was briefed about this late Sunday evening by Todd Teresi, Sr. VP of Display Marketplaces at Yahoo!. Todd's title should give you a hint about why Yahoo! purchased Right Media. Right Media owns an ad exchange, which is different from an ad network. Ad networks typically aggregate ad inventory from publishers and resells it to advertisers. In contrast, an ad exchange is a marketplace where publishers and advertisers can find and execute advertising transactions, similar to what happens on a stock exchange. Ad networks could turn out to be one of the largest users of ad exchanges.

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Lester Wunderman: Keynote Thursday

Charlene Li introduced Lester Wunderman.



He began by stating that we are in the business of creating relationships between buyers and sellers..this is not new, We need some new rules to adopt to the  online world; we don't need new principles.

Relevance, relationships, repurchase and retention; these are the 4 R's for Direct Marketing.

Ask yourself, which product do you buy over and over again and why?

Would you like to be rewarded for your loyalty? He says we are not loyal to products the same way we are to family and friends..That is why relationships are so important. Satisfaction is the keyword.

We must satisfy our customers...the basic thought is the principles that he has been advocationg for years about relationship marketing can be enhanced through tecnology. Use technology to improve the delivery. Delivery of what? The delivery of the relationship. The dialogue.

Satisfaction, relationship, and loyalty...they can be enhanced online. Embrace the technology. Repeat.....embrace it. Add technology to death and taxes to the things that cannot be avoided.

Other comments from Mr. Wunderman: Internet marketing is a strategy, not s tactic. Some rules he notes: Create relationships Trust is the basis. Be accesible to your customers You are what you know

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