Advertising growth is decreasing at present for search engine Yahoo! which is experiencing the knock-on effect of diminishing profits, Bloomberg has predicted.Quarterly profits at Yahoo! are forecasted to be down by around 6.9 per cent during the second quarter of this year, which equates to a sixth consecutive fall.
During the second quarter of 2006, Yahoo!'s share was worth $164.3 million (80.37 million pounds), compared with the predicted $153 million (74.8 million pounds) for the corresponding period this year.
Another reason for the estimated falling share value is Google's consistent dominance in the US, according to an analyst at Sanford C Bernstein & Co.
Jeffrey Lindsay told Bloomberg: "Google is continuing to increase its search share and we don't see any end in sight."
Newly appointed chief executive officer Jerry Yang has now amalgamated the banner-ad and search sales teams so that sales staff are proficient in selling different types of adverts.
In a bid to reverse flagging fortunes in the advertising department, Yahoo! launched a programme entitled Project Panama with the aim to make advertisers' links more relevant and therefore more productive to the client and user.
According to CNN Money, Brian Bolan, an analyst with Jackson Securities, stated: "It's going to be the status quo. Yahoo! has been trying to compete with Google and losing."
Also speaking to CNN Money was Denise Garcia, an analyst with A.G. Edwards, who remarked that, in her opinion, Project Panama would not increase "revenue per search by that much until the end of the year".
