The Wall Street Journal looks at Yahoo’s efforts to co-exist alongside Facebook, as the social networking giant lures users away and eats into the $9 billion display ad market. The WSJ quotes an eMarketer report that showed Yahoo with a 16.2% share of that market in 2010, and Facebook following with a 13.6% share. Facebook had a much smaller piece of the pie in 2009 with 7.3% of the market. Big ouch for Facebook competitors.
In addition to hanging on to its ad revenue, Yahoo is also trying to rein in wandering users as time on Yahoo sites continues to slide. In addition to installing Facebook’s “like” and “share” buttons on Yahoo’s news and sports sites — so Yahoo users could share articles with their contacts on Facebook — Yahoo is making sure its content appears in Facebook’s search results. (We’ve seen Yahoo do this before with Twitter and other sites.) And Facebook is no stranger to uneasy partnerships. The WSJ article goes so far as to call Yahoo and Facebook “frenemies,” a label that both parties reject. Big Wheels from each company tout the success of the year-old “partnership” and the enhanced user’s experience on both sites. (That said, there still seems to be a bit of veiled snarking going on, so read the article for the quotes.)
And although Yahoo may be making the most out of its rivalry with Facebook, the Journal reports that Internet icon has other solo ventures in the works, including plans to serve online content providers to enrich the user experience and Livestand — though not mentioned by name in the article — the personalized digital newsstand for the super-mobile tablet and phone crowd.
As a bonus for social media geeks, the WSJ offers a great timeline that looks at Yahoo’s social efforts dating to 2005’s Yahoo 360 venture (Anyone remember that?), as well as an interactive timeline of Facebook’s ambitions.