Yahoo Inc. has announced that it is combining both major pieces of its U.S. advertising business under one sales executive, David Karnestedt. Both search and display ad sales teams will be under the same umbrella with the hopes of catering to the needs of Yahoo’s customers.
The company also declared that advertising sales executive Wenda Harris-Millard has officially left the company and gone to Martha Stewart Living Omnimedia to be president of media as of July 16th. Millard, who was on the team that developed the reorganized plan, knew of the decision to place Karnstedt in charge of the merged divisions and opted to go to MSLO rather than take the role for global ad sales for Yahoo.
According to Roger Barnette, president of SearchIgnite, sister company to 360i and media management platform specializing in auction-based media, Yahoo is aligning itself to materialize as a leading force in auction-based media. This comes after the acquisition of Right Media and lends itself to more attention as to what Yahoo’s future plans may be. “This new structure further solidifies marketers’ instincts to plan their search and display campaigns together,” said Barnette.
It will take about two quarters before the merger is complete which initially started in February. This past monday Yahoo claimed its second-quarter revenues would land in the lower half of its previously stated outlook which, excluding the cost of payments to advertising partners, was projected in April between $1.2 billion and $1.3 billion. This is a result of slower growth in display advertising offsetting the high performing, recently upgraded search advertising operations.
Gregory Coleman, executive vice president of global sales believes that this new plan will eventually take the company to a new of level of advertising. “By taking a more holistic approach to advertising sales, Yahoo will become a more consultative seller, which should make buying complete solutions easier for our customers across Yahoo and our partner sites,” he said.
Yahoo is also searching to add to advertising business on partner media sites. They are already supplying display and search advertising for eBay and recently signed a deal with Comcast.
The announcement has been said to have nothing to do with Millard’s exit, however industry experts are keeping their eyes on Yahoo, waiting to see who is the next to leave and what is going to be the next move for the company.