Scott Thompson was named CEO of Yahoo three months ago. He came from the world of PayPal and was supposed to be a signal that Yahoo was looking for a reorientation. It’s a no-brainer that Yahoo has lost the battle over search and social to Google and FaceBook, but not necessarily the battle over display advertising. On Wednesday Thompson announced that Yahoo would be slashing jobs as it also slashes its offerings in an effort to be really good at one thing instead of mediocre at 1,000.

It appears that Yahoo is going after video content and the display advertising panacea that comes along with it. This is not to say that Yahoo is looking to displace YouTube. Rather, Yahoo wants to be instrumental in cord cutting as the destination people go to for their usual TV content.
Yahoo has already inked a deal with ABC News and hopes to do more. There is also original video content in the works. More content, especially original content, will help drive more people to Yahoo and the ad inventory Yahoo displays. The social media agency that advertises with Yahoo should, in time, see improved numbers. There might also be opportunities for the creative agency to help with the original content and drive more people to conversion sites independent of the Yahoo networks.
Thompson’ experience with PayPal, a service more focused on partnerships with other brands instead of the usual stand-alone orientation of Yahoo, should also help the social media agency. We can expect to find Yahoo much more cooperative and interested in helping out partners. It will take time for Yahoo to revamp that orientation and make products more suitable, but the payoff should be nice.


