Yahoo! & Success with Verticals

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Yahoo! Finance

Yahoo! now has what might be called “a formula” for creating verticals: branded content + video + community/Answers + personalization tools. That describes the recently launched Yahoo! Food and it describes the just launched Yahoo! Personal Finance. (You can read more about the new Finance site here from CNet’s Elinor Mills or the WSJ.)

Essentially Yahoo! can now quickly create rich verticals around any content area of perceived interest. This is both positive and challenging for the company. It’s an asset because it builds tremendous value for consumer-users and creates more targeted display ad inventory for Yahoo!

The challenge is that Yahoo! might ultimately be creating clutter. But if Yahoo! can nicely integrate all these verticals into its shortcuts (at the top of search results) then they might swing it.

Greg Sterling is the founding principal of Sterling Market Intelligence, a consulting and research firm focused on online consumer and advertiser behavior and the relationship between the Internet and traditional media, with an emphasis on the local marketplace.

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