Second generation internet companies, Google and Facebook, are taking market share from Yahoo.
The abrupt firing of Carol A. Bartz from her job as chief executive for Yahoo on Tuesday has raised doubts about the future of the struggling Internet company.
Yahoo’s failure to name a permanent successor to Bartz is seen by some analysts as a sign that the board may be considering selling all or parts of the company, according to the Chicago Tribune.
Bartz is the third CEO to be ousted in the past four years as Yahoo struggles to regain its dominance in the rapidly changing Internet market it once ruled with AOL. Analysts blame Yahoo’s decline on a failure to keep pace with changing internet habits brought about by the advent of mobile technology and social networking. According to the The New York Times, Yahoo and AOL “astutely capitalized” in the first shift from paper to online information sources, but failed to make the jump to social networks.
The next generation of companies, Google and Facebook, have developed mobile and social networking services attracting growing numbers of users, as well as advertisers who value the targeted information available through social networking sites, said The Times. Smartphone users are a key consumer group sought after by marketing professionals.
Millionaire Corner research shows smartphone users are more likely to be young, but that a growing number of older, wealthy individuals are using smartphones and tablets. Nearly 40 percent of Ultra High Net Worth investors, those with $5 million to $25 million, now use smartphones, according to a survey conducted in June by Millionaire Corner. The share grows to nearly three-fourths for the high net worth who are 54 and younger. Usage is also high (65 percent) among ultra wealthy professionals, such as doctors and lawyers.
High Net Worth investors, as do most smartphone owners, use the mobile devices primarily for texts, emails and calls, but they also use the devices to follow the news, play games, access social networks, track sporting events and manage their finances. More than half conduct investment research via their smartphones (56 percent) and access their accounts (54 percent). Nearly 20 percent trade investments over their phones, and 29 percent use the mobile devices to pay bills. A common activity, corresponding with a financial advisor, is undertaken by 69 percent of ultra affluent smartphone users. Well over half (55 percent) are interested in using smartphones to make purchases.
Tablet use is also catching on with the high net worth investor. Twenty percent overall use computer tablets, while the share grows to 43 percent for investors age 54 and younger. Investors are even more likely to use their tablets to conduct business with about 70 percent of high net worth tablet owners using the device to access accounts and research investments, 48 percent to pay bills, and 29 percent to trade investments.