Cash cow - but needs feeding
Silence by Yeshua is something to talk about. The real reason for his silence emerged today: over the past few months, he has been cooking up the largest deal in Israel's Internet sector in many years - the acquisition of control of Israel's largest classified ads site, Yad2.
Besides the high price tag, Yad2 is one of the most profitable and fastest growing websites in Israel, which has few large sites that are also financially sound. The acquisition follows extensive collaboration between the two parties, and will enable Walla! to create real synergy between the websites and create real value for shareholders.
The deal will turn Walla! into the leader in classified ads sites, a profitable and growing sector, and will help it compete against Hebrew daily "Yediot Ahronot's" ynet, which operates classified ads site Winwin.
Classified ads site Homeless is also in the field, but Yad2 has a strong lead. Walla! was not prepared to concede, even if Yad2 cost it NIS 117.5 million, when its shareholders' equity stood at NIS 99 million at the end of the first quarter of 2010.
In addition to Yad2's advertising advantage, which is based on regular advertisers, and segmentation ability that enables Walla! to stop relying on display ads, and to diversify its sources of revenue, Yad2 presented impressive growth in revenue in 2009, and the site's value has nearly doubled in the past two years. The amount of the acquisition shows that Walla! believes that Yad2 is a cash cow.
Yad2's site is also more or less immune to the effects of international players like Facebook, Google, and YouTube, which have entered the Israeli market in recent years and quickly become the country's top websites at the expense of local portals. It is hard to imagine Google Inc. (Nasdaq: GOOG) or Yahoo! Inc. (Nasdaq: YHOO) setting up an Israeli classified ads site, but even in this respect the acquisition is a gamble.
Walla! has also not missed the social networks trend. Two years ago, it acquired 70% of Mekusharim at a company value of NIS 13 million, but was forced to watch from the sidelines as Facebook drew Israeli surfers and advertising budgets for social networks, including at Mekusharim's expense. Walla! hopes that, this time, fate will deal it a better hand.
Above all, however, the acquisition of Yad2 enables Walla! to meet its main challenge - the glass ceiling of the Israeli Internet market. Israel has one of the highest Internet penetration rates in the world, at 82%. This means that large websites can no longer substantially increase the number of surfers and high growth rates are already behind them. In this context, Yad2's potential is critical for Walla!
Besides Yad2's growth rate, the site does not need massive investment from Walla! for development, since Yad2 is not a traditional site that needs investment in content, and it is a lean company. However, that is not the snag lies. To date, Yad2's strategy was to spend lavishly on round-the-year advertising, both online and on television, which helped boost its growth rate.
This advertising strategy is very different from Walla!'s. The question remains whether Walla! will be wise enough to continue advertising Yad2, especially in view of the large amounts spent by "Yediot Ahronot" on Winwin. If not, it is possible that Yad2 may not continue to achieve similar growth rates, and the acquisition price will not justify itself.
Questions and Answers
In the internet marketing there is a service which is giving you the free services to post your product or services on the internet marketing about telling to the visitor or for sale. Like buy and sell computer, job posting, your company or your own services on the internet marketing. Etc.
Free classified ads are very useful in generate internet traffic to the internet advertising sites. Classifieds ads are useful in promotion and exchange all kinds of products and services. Public looking to get any product will be searching for the stuff in the pages of online classified sites.
One time sellers and long term sellers can cash in on the advantages of free online classifieds. Despite the service is given to you free of cost, free online classifieds ad websites offer great service in helping you sell your products.
The essence of every online business is to generate maximum web-traffic to increase its prospects of getting more customers online while contending its competitors in the similar niche. Free Online Classified Ads irrefutably alleviate web-traffic to your online business.
The online marketing, in contrast to its traditional offline business marketing is relatively faster and most sought-after requirement for Business Company. Many website companies promote their business products and services through their website online.
Free online classified ads websites are a great way to promote your programs if you have no budget for marketing. They can sometimes be time consuming depending on the requirements of the website you are using. They are well worth it though if you effectively target your prospects.
The online world is changing and this is one of the main reasons that there is a great room for marketing and promotion. The ways to promote the products of any specific company are infinite, however the companies need to concentrate on the top ways so as to get the maximum profit.
When you need high avenues of free advertisement for traffic and promotion of your business, you would definitely understand how traffic and promotion is making the world go round with free ads.
There are two kinds of advertising above the line (ATL) and below the line (BTL). Above the line advertising is one which involves commission such as radio, TV ads or newspapers and below the line advertising is print based such as flyers, direct mail, trade fair marketing or point of purchase ads. There is no commission for advertising agency in this kind of advertising. Now a day's above the line advertising is not preferred as much as below the line.
We have added many features to the Fusion Electronics Direct site to allow users to be able to search for there products they are looking for. We have got some new product ranges from Fusion which are the New headunit range and the full sub and amp range. They look really sleek so no matter what vehicle you have it will look perfect.
The debate for white paper is intensifying in the b2b blogosphere about whether the white papers are still relevant for b2b marketing. But if you ask me, then honestly speaking, white papers are still an integral part of b2b marketing. This article will state you the reasons why white paper is still essential for b2b marketing.
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