Great job, Terry. Now can you please get Courtney off "Filthy Rich: Cattle Drive"

The earnings reporting season began anew Tuesday when Yahoo delivered its latest quarterly financials. The Internet company reported a solid quarter across the board, surpassing analyst expectations thanks to strong ad sales. Advertising revenue climbed 46 percent to $1.16 billion in the quarter, accounting for 87 percent of Yahoo’s revenue. Yahoo’s results were positive last quarter as well, but in large part thanks to its holdings in Google (see “Yahoo search for record earnings returns $191 million worth of Google stock“).

Clearly, the online advertising market continues to grow rapidly and Yahoo is uniquely poised to take advantage. Indeed, according to eMarketer, Yahoo and Google will share about half of the $12.9 billion in online ad spending expected this year. And what of Google? Yahoo seems largely unaffected by the juggernaut’s ever-extending shadow. Its diversified ad strategy, which includes display and video ads as well as the text ads popularized by Google, is paying off, and though Google boasts better click-through rates on its text ads, Yahoo is cashing in on sales of display ads. “Fifty of our top 200 brand advertisers are also in our top 200 search advertisers,” Yahoo CEO Terry Semel said during a conference call with Wall Street analysts. “What advertisers are finding is that the more they utilize both forms of advertising on the Yahoo network, the better they do with each.”


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