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Yahoo enters Indian advertising space through Tyroo

July 23, 2007 | In: Uncategorized

Internet web giant (or web giant of yore) Yahoo! has announced that it had taken around 35% stake in an Indian web advertising company Tyroo for an undisclosed amount.

Tyroo Media Pvt Ltd is one of the leading Indian self serve ad marketplace and has around 1000 publishers as its clients. Of the late is also working to roll out its own ad network and is busy signing publishers.

Earlier there were rumors that Yahoo is planning to launch its Yahoo publishing network as some publishers of Google have received enquiries from Yahoo India about Yahoo publishing network. ( Read “Yahoo publisher network in India”), but it seems rather than developing its network from scratch, it has decided to go M&A route to get direct access in the market and pose some challenge ( if there is any) to Google Indian advertising operations.

Indian online advertising market is presently dominated by Google which has been able to bring Indian advertisers as well as publishers on its fold followed by rediff. Due to increased attractiveness of Indian market, all internet majors are trying their best to catch the action in India including AOL ( it launched its India centric site sometime back though without much success).

Yahoo, despite being an early entrant in the Indian web-space ( around 2000) has not able to demonstrate any success so far, and its performance in term of content, stickiness or technology has been pathetic. Majority of Yahoo traffic is driven by yahoo mail which has remained the most popular email service so far, though Gmail, which has come out of its beta just 4-5 months back is now almost breathing on its neck.

Hence by acquiring Tyroo, Yahoo will be able to gain much needed foothold in Indian advertising space immediately, which is right now dominated by Google, but how far this strategy will bear fruit , is anybody’s guess. But there is one thing that is “In internet space, market shares are not factor of M&A and relationships but a function of management vision and technology”, and unfortunately on both part, Yahoo! yet to get that zing at least in India.

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