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Yahoo Display Ad Sales Fall 11% in Q1 2013

Yahoo is going through a resurgence throughout most of its properties with new CEO Marissa Mayer taking a good grip of the reigns of the once ailing internet dinosaur. Net income has soared 36% under her leadership in the first quarter of this year, but sales of display ads have fallen 11% and search revenue, excluding sales passed to partner sites, has fallen 10% to $425 million.

It appears the company is still losing advertisers to competitors Google and Facebook, and these sales fell below analysts’ expectations.

Advertisers continue to shun Yahoo’s traditional content niche-targeted banner offerings in favour of the lower priced and contextually targeted advertisements offered by Google and the huge reach and demographic targeting of Facebook.

Though net income soared 36% in the first quarter, Yahoo reported that sales of display ads decreased 11% and search revenue, excluding sales passed to partner sites, dropped 10% to $425 million.

Yahoo, the biggest U.S. Web portal, also forecast sales that fell short of analysts’ estimates as it continued to lose advertisers to Google and Facebook. As a result, eMarketer is predicting that Yahoo’s share of the U.S. market will shrink to 7.7% this year, from 9% in 2012.

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