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Yahoo's Cahan says mobile key to new businesses' sales goal
[SAN FRANCISCO] Yahoo! Inc's mobile advertising will fuel growth in the Web portal's new businesses, which are set to contribute more than half of revenue in the next 12 to 18 months, Senior Vice President Adam Cahan said.
Mobile-ad services delivered most of the 2014 revenue that came from new businesses, which also include social and video, Mr Cahan said during an interview with Bloomberg Television. He called the 18-month goal "aspirational" in a later interview.
"We really invested in that business and grew it," Mr Cahan said during the televised interview. "My hope is that actually we will become a mobile company." Chief Executive Officer Marissa Mayer, more than two years into a turnaround, is seeking additional revenue from newer businesses like mobile and video content, as she looks to bolster advertising at the Sunnyvale, California-based company. She said on a call with analysts last month that she expects the new businesses to contribute more than US$1.5 billion in sales this year.
Mr Cahan also said Yahoo will combine its new advertising platform, Gemini, with Flurry, the mobile-analytics company that the Web portal purchased last year. Gemini lets marketers easily buy search-based promotions along with native ads, or spots that run alongside editorial content. Yahoo is taking tools for the ad platform to outside developers, who create applications for smartphones and tablets, he said.
"We are bringing that together," he said.