How The Death Of All Those Groupon Clones Will Affect Yahoo’s Revenue

Scott Thompson

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Here’s an interesting and unexpected side-effect from Groupon slowing its marketing spend, as well as the slow-down in growth of the daily deal business overall from Ben Schacter at Macquarie Research:Daily Deal Sites Continue to Pull Back Homepage Ad Spending

Advertising from Daily Deal sites on the homepages of the sites we analysed continued to decline throughout 4Q, accounting for ~2% of total ads in 4Q, vs. 3% in 3Q’11 and 8% in 2Q”11. During the second half of the quarter, we only encountered one Daily Deal ad (from Groupon, on Yahoo’s homepage), with no appearances from any of the smaller operators. Although there may be some element of seasonality here (with Daily Deals making way for retail and other categories during the holiday period), the drop-off also indicates that our prior concerns about the sustainability of homepage ad spending by these sites appears to be playing out.

This nugget comes from a big report by Schacter on display advertising for Q4. His main takeaway:

YouTube continues to benefit from its exposure to media companies, while oversized/custom ad units at YHOO and AOL are somewhat weak versus the year-ago period. We believe that YouTube, Facebook, and increasing mobile Internet access are negatively impacting the position of traditional portal homepages (a theme we expect to continue into 2012).