Subscribe via RSS Feed Connect on Google Plus Connect on Flickr

Yahoo and the end of Web 1.0

Thursday, 28 July, 2016

More than a billion people now check Facebook on their phones every single day. The social network revealed this new milestone last night when it released its impressive second-quarter earnings. What’s that got to do with Yahoo and the headline on this post? Well, context is important. Consider these stats:

Facebook now owns a $17-billion-a-year mobile ad business. In the second quarter, mobile sales made up 84 percent of its $6.24 billion in advertising revenue. Overall, the social network reported $2.05 billion in profit, up 186 percent year-over-year, on $6.43 billion in total revenue, which rose 59 percent compared to the same period last year. And Facebook ended the second quarter with 1.71 billion monthly active users.

Which brings us to Yahoo, which was was acquired on Monday by an American telephone company, Verizon, which paid $4.8 billion for the brand and its internet properties. The cause of this ignominious end was simple: Yahoo became irrelevant for adults quite some time ago, and young people don’t use it at all. They spend their time now on Instagram, Snapchat, WhatsApp, Spotify and Facebook.

Yahoo’s major missed opportunity was the rise of the mobile web. That failure had a lot to do with the short stint as CEO of Scott Thompson, who departed in a cloud of controversy. Distracted by its internal troubles, the company took its eye off the ball, as it were, at a critical moment. Thompson was replaced in July 2012 by Marissa Mayer, who bought Tumblr for a billion dollars in an attempt to attract younger internet users. A blogging platform is not what the yoof wanted, though.

Note: Yahoo had the chance to buy Google for $1 million and Facebook for $1 billion.

The new benchmark is that more than a billion people check Facebook on their phones every day. The old benchmark was Yahoo’s directory of websites and this week began with the purchase of the gravestone. Yahoo belongs, with the rotary phone, to another era, and its departure marks the end of Web 1.0. Those riding high on the Web 2.0 wave now should remember, however, that “the bubble fame” does burst and voice-based interfaces on devices such as Amazon’s Alexa are moving the web beyond browsers and smartphones. Blink, and you miss it. Yahoo fell asleep and its legacy includes happy memories of the “Site of the Day” feature. The web was young then. It’s mobile now.


Comments (1)

Trackback URL | Comments RSS Feed

  1. Henry Barth says:

    “Note: Yahoo had the chance to buy Google for $1 million and Facebook for $1 billion.”

    The Google bid was in 1998; the Facebook in 2006.

    In February 2008 – a few short years ago — Microsoft offered to buy Yahoo for $45 billion cash. They were refused.

    http://www.cnbc.com/microsoft-bids-for-yahoo/

    I’m sure that decision is regretted but not by Microsoft.