Yahoo is vying to stay relevant in this social media centric world, and the company’s recent Tumblr acquisition is proof of their desperate efforts to keep up with the likes of Facebook, Twitter and Google. So desperate in fact, that since Marissa Mayer’s takeover as Yahoo CEO in July 2012 she’s acquired 11 companies including the $1 billion Tumblr.
While Marissa makes it rain in hopes of getting Yahoo her groove back, she’s failing to realize how far behind Yahoo is in every aspect of contemporary web culture. When I think of Yahoo, AOL comes to mind. They are massive tech companies with the resources needed to make a resurgence, but they missed the window of opportunity to jump on the social media/mobile bandwagon.
I’ll go out on a limb and say the Tumblr takeover was counterproductive at most. It may appeal to advertisers in the short term as far as reaching younger, coveted demographics, but it won’t change the perceptions younger generations have about the company. Brands like Facebook, Twitter, Google, Apple, Pinterest, Instagram and Reddit have found their niche and are successfully building their respective brands and users. These companies weren’t afraid to meet the changing digital landscape head-on, and Yahoo’s complacency during this time of rapid change is one of many reasons why they lost their competitive edge.
To ultimately fix this image problem, I’d first avoid making any other $1 billion acquisitions. Embrace the existing and acquired products and services you now have, and focus on improving these products to meet the changing needs of your users. If the products and services you offer are the best they can possibly be, the image problem will eventually fix itself.