Bronte Media

Yahoo’s Q3 was another nail in the coffin of mediocrity but upon closer inspection one thing is clear: The company is now being eaten up by Google overseas. Google ‘overseas’ is much more potent than Google US, having 80%-90%+ market share in almost all the major countries. And now it seems it is eating Yahoo’s lunch on ad-repping and/or Yahoo’s businesses overseas are completely disintegrating.

International was down 12% yoy, but US was up 7%. Yahoo currently has a 70%/30% revenue split of US vs international.

The always excellent Kara Swisher had a great interview with Jerry Yang yesterday in which this nugget was unveiled:

“International was hit much harder, although display still grew double-digits there in Q3.”

So assuming Jerry is right, then that means that Yahoo search completely bombed. And it would have to bomb alot since it is a smaller portion of international revenue than it is in the US where Yahoo is roughly 50/50.

The only reason I can think of is that Yahoo’s share has fallen into such obscurity that marketers haven’t even bothered to sign up to the service and load in their Google keyword lists (see MSN AdCenter in the US).

You mightn’t think that matters much but International is a faster growing portion of the total global pie and that won’t change at any stage in the future.