The company's deal with seven newspaper groups will give Yahoo a possible extension beyond job classifieds to working with publishers on contextual ads, local search, and other revenue generating possibilities.
Classified Intelligence on the arrangement between Classified Intelligence founding principal Peter Zollman said the time was right for Yahoo to make these deals, especially with Decker and Yahoo's senior VP of Marketplace Hilary Schneider, ex-Knight Ridder Digital, having backgrounds in the newspaper industry. Likewise, newspaper publishers have been looking for a company to deal with for these opportunities. Zollman commented on the dynamics of the agreements: "We've been asked, Who's the bigger winner here - Yahoo or the newspapers?' It's tough to say; we'd vote for both.' Yahoo has been struggling in a growing shadow cast by Google, and has been criticized for a lack of focus and direction. "HotJobs had some of the best online recruitment products, but it had become an afterthought behind CareerBuilder.com and Monster.com. Meantime, newspapers have been desperately trying to find a breakout strategy in interactive media. Even though many are growing substantially online (30-50 percent revenue growth year-over-year), that's from a very small base." Zollman's reference to criticism of Yahoo's performance was prefaced over the weekend by the
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