Yahoo just reported their most recently quarterly earnings, and the numbers aren’t too good. Overall revenue fell by about 13%; even search revenue fell. (Profits increased, but only because of strong cost-cutting measures, including layoffs.) Google, on the other hand, released their numbers a few days ago, and they showed revenue and profit increases. (Microsoft will release its numbers later this week.)

This doesn’t bode well for Yahoo, and should be a warning flag for search engine marketers everywhere. Yahoo is still number two in terms of search, but the writing on the wall is not positive. (And this does not even take into account Microsoft’s launch and aggressive marketing campaign for Bing.)

As search engine marketers, we should all closely monitor our analytics reports over the next six to nine months to ensure that we continue to allocate our budgets in line with the evolving realities of the market.

Marketing communications agencies such as Domus should be especially diligent, being the stewards of our clients’ budgets. Please visit our web site to find out more about us.