Yahoo is ditching its mobile banner format, instead focusing on native ads on smartphones and tablets, as the portal looks to boost its mobile ad revenue through more engaging campaigns.
Yahoo said it will now concentrate on selling ‘Stream ads’, the companies version of native ad placements (often referred to as sponsored content).
“Most consumption now is coming in the forms of streams like Yahoo’s mobile app,” said Leo Polanowski, Yahoo’s head of client services for the Americas. “So it’s not a leap to say, ‘Hey, we want to provide the ads in the form because you get increased click-through rates and conversions.’”
By the end of this year, Polanowski said, Yahoo will likely completely switch to non-banner formats for its mobile ads.
The effectiveness of banner ads has long been questioned by the industry, with many recent reports finding that consumers find mobile ads more interruptive than TV ads and that mobile banner clicks are mostly due to mistaken clicks on a small screen, rather than as opposed to purchase intent.
