Yahoo7 is promoting its credentials as a digital media company and ramping up marketing in a bid to change perceptions that it's not just Seven West Media's digital port.
As the deal with Verizon, which bought Yahoo for USD$4.8 billion in July last year, approaches completion, its national agency sales director Paul Bates tells AdNews that Yahoo7 is well on its way to solidifying its position as a serious competitor against both traditional media companies and the digital duopoly.
Yahoo7 has been on an agency roadshow for the past few weeks across Sydney, Melbourne and Brisbane showcasing its new marketing proposition of data, content and technology.
The new products were launched in February and include new video ad formats and a focus on its propriety technology, such as Gemini, its BrightRoll DSP and BrightRoll Exchange.
“We know we had the reputation of being Seven West Media’s digital asset but that is changing as we build awareness of our new products,” Bates says.
“The roadshow has helped the market understand our offering and our position as the genuine third player [behind Facebook and Google], shifting perceptions that we aren’t just the digital arm of Seven.”
Bates declined to comment on whether the Verizon acquisition of Yahoo will end the joint venture with Seven, adding the deal is to be finalised “in coming weeks”.
Recently, Paul Sigaloff was promoted to the newly-created role of chief revenue officer, which indicates the business is being restructured for a split from Seven.
Bates says the response the data, content and technology has been the most positive of his more than 20 year career.
The new proposition, as well as concern around the brand safety of YouTube and Facebook, has led to more conversations between Yahoo7 and agencies. Bates hopes to convert these to ad dollars.
“The conversations have started to increase and people are wanting to find out more,” he says.
“Brand safety is always super important and in the two years I’ve been at Yahoo, no one has questioned the safety of our environment.”
Yahoo7's claim to be third player in the market was been refuted by other media companies, including Nine, which believes it has a larger overall digital audience.
“When we compare ourselves to the traditional digital set, like News Corp, Fairfax and Nine, we are making great strides in video across short form and long form and are growing at a much faster rate.”
Yahoo has been building on its native ad marketplace Gemini as more clients demand branded content.
“We saw the shift towards branded content and away from display, which is why we invested in Gemini. The display market was shrinking and Gemini capitalises on the native space so we aren’t struggling with a declining product,” Bates says.
Another success for Yahoo, according to Bates, has been the launch of its women’s network, Be.
Women’s networks have been a key focus for Australian publishers this year, with News Corp, Nine and Bauer all targeting the demographic.
Bates says Be’s influencer-led strategy has paid off, with each of its verticals led by Australian personalities.
“Be has been the biggest success for Yahoo in the last nine months. The lifestyle/entertainment category is one that is growing really fast. Combined with the video-first strategy – it’s been a real strength for us,” he says.
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