Yahoo! (YHOO): Be Careful What You Say

Terry Semel, Yahoo!’s (YHOO) seemed to get himself in trouble from time to time by saying how great the company’s new Panama system was and how it would help lift the online company’s revenue. Most of that did not come true.

As Yahoo! reorganized its sales operations and pushed North American sales chief Wendy Harris Millard out the door (she ended up at Martha Steward Omnivision almost immediately), the head of Yahoo!’s worldwide sales, Greg Coleman, made the statement that Yahoo! would be better off if its search results advertising and display advertising were sold by the same organization.

Yahoo!’s new president put a point on it, according to Reuters: "Yahoo President Susan Decker said in a phone interview that the consolidation of Yahoo’s two advertising arms — display and Web search advertising — reflects growing demand by customers for campaigns that combine both types of ads, with newer types of video advertisements."

But, these are silly statements from silly people. If combining text and display advertising was such a fabulous idea, how did Yahoo! come to that decision so recently. Perhaps Semel was holding up the paperwork in his office. "When combined, the two organizations will deliver profoundly better results than when delivered separately," Coleman said. Coleman should be careful what he says. "Profoundly better" is pretty good.

It would seem that Coleman should have been the scape goat for Yahoo!’s advertising problems. He has been the chief. But, the people above him and below him are gone. Not many excuses left.

Douglas A. McIntyre can be reached at [email protected].