After Yahoo announced its first-quarter earnings last month, CEO Marissa Mayer told analysts that its mobile services had about 300 million monthly visitors worldwide, up from 200 million in December.
Despite the increased traffic, Yahoo’s display ad sales decreased 11% from the same time last year, and search revenue, excluding sales passed to partner sites, dropped 10% to $425 million. Yahoo is also competing with Mayer’s former employer, Google, and with Facebook, which command a larger portion of marketers’ online budgets.
In an interview with Bloomberg TV earlier this year, Mayer explained that partnerships would play a large role in Yahoo's mobile strategy. The Chitika deal suggests that strategy extends to the advertising arena as well.
"Given that we do not have mobile hardware, a mobile OS, a browser, or a social network, how are we going to compete? I think that the big piece here is that it really allows us to partner," Mayer said. "It means there is an opportunity for strong partnerships. That is what we will be focused on."