Why Yahoo Just Killed Its AdSense Clone

YahooExecsInterim Yahoo sales boss Hilary Schneider

Photo: yahoo.com

Yahoo is shutting down its Publisher Network for small publishers effective April 30.(The Publisher Network is Yahoo’s Google AdSense competitor. It serves ads based on the page’s content.)

Here’s what you need to know about the news, straight from a source familiar with Yahoo’s (YHOO) strategy:

“They’re surrendering the war [against Google Ad Sense] long after all the troops have been pulled off the battlefield. It’d always been a crappy business. It’s totally consistent with [Yahoo’s decision to not] focus on small publishers. Not a big deal. Not material in any way.”

Our source tells us the news does not effect Yahoo’s premium display business.

Here’s the statement Yahoo is giving:

Yahoo! continuously evaluates and prioritizes our products and services, in alignment with business goals and our continued commitment to deliver the best consumer and advertiser experiences. After conducting an extensive review of the Yahoo! Publisher Network beta program, it was determined that the resources that would be required to advance the program to the level expected by our publishers would be better utilized in other areas of Yahoo!’s business.

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