Category: Random, But Interesting

Yahoo! It’s our industry’s favorite puzzle. On the one hand, it’s one of the largest sites on the web, on the same size and scale as Google, Facebook, and Microsoft. On the other hand, it’s not growing very quickly, revenues are flat, and investors have been calling for CEO Carol Bartz’s head with increasing regularity. The company has failed to find a “hit” that redefines its value proposition in a world driven by hits like Twitter, Foursquare, and Flipboard. What’s a nearly two-decade old industry legend to do?

Well, bring in fresh blood, for one. The company recently hired Ross Levinsohn, formerly of Fox, to lead North America. Prior to that, it hired Blake Irving, formerly of Microsoft, to lead product. I’ve spent time with both in the past month, and one thing is for sure: They’re singing from the same song sheet. Both men are energized by the chance to leverage the Yahoo platform, and both are realistic as well – it won’t be easy, and it won’t come fast.

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Twitter. It’s our favorite conundrum here in Internet Media Land, isn’t it? On the one hand it’s changing the world and growing like crazy, with more than 200 million users who generate 155 million tweets a day. The services handles tens of billions of search queries a month, putting it on scale with some of the most elite platforms in the world. However, only a fraction of its users are also active creators of content; most are readers and followers – and that’s where Twitter can be confusing*. If Twitter is to truly scale, it needs to become a more compelling media experience. Further, Twitter’s initial foray into advertising products, its “Promoted Suite” of services, are garnering some mixed reviews, mainly for a lack of scale, though the company tells me it engages with 600+ advertisers who have run 6,000+ campaigns to date.

The company is openly self critical of its shortcomings, and knows it has work to do to make its service less opaque and more valuable to both marketers and users (not to mention developers, who have been scratching their collective heads of late, wondering how best to create value in the Twitter ecosystem). In March the company welcomed co-founder Jack Dorsey back into an active product role, and just this week it acquired TweetDeck, a respected third-party developer which had created a custom interface for advanced Twitter consumers.

And perhaps no question has dogged the company more than this one: When and how can Twitter make money? The issue is further freighted by staggering valuations in the private secondary market, which have wrapped a multi-billion dollar valuation albatross around Twitter’s still slender neck. The successful IPO of industry bretheren LinkedIn and Yandex, and the expected success of Pandora only heighten expectations for the young company.

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