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Marissa Mayer

Verizon could boost Yahoo ad targeting, but challenges ahead

Verizon's deal for Yahoo could give the phone company a stronger foothold in digital advertising as it takes what it knows about its customers' whereabouts and combines that with Yahoo's popular destinations and AOL's advertising expertise.

To boost traffic and revenue even more, Verizon could also ship some phones with Yahoo apps already installed.

Ultimately, Verizon could do what Yahoo alone could not: make money off its highly trafficked properties, such as Yahoo Sports and Yahoo Finance.

But Verizon also faces the same challenges a stand-alone Yahoo had: how to get better ad rates through personalization and targeting, when Google and Facebook are already adept...

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