Yahoo!, inc. Aims to Become the Next Big Player in the Daily Fantasy Sports.
The internet website is apply different strategies in order to outperform its rivals of the fantasy sports website market, in order to do so it will be promoting its ‘free ads’ strategy.
Yahoo! Inc. has figured a strategy to become the next big profitable player in the Daily Fantasy Sports by promoting its platform through the free advertising strategy. It has launched its NFL challenge which is a $1 million challenge and over 43,357 people have already signed up for the contest.
Through the plan that Yahoo has it will be bigger than Fanduel and Draftking when it comes to Daily Fantasy sports. The strategy that the social website will follow is that it will have free space for advertisement to entice its customers; this will attract more people who want to advertise their firms, products or services.
The firm stated that these free advertisement spaces will be available on their search engine website as well as their sports website. To generate profits, this free ad strategy will take the firm quite far in the context according to analysts. Larger firms are believed to invest thousands of dollars in advertisements as it is a necessary but a rather expensive way of generating profits. Yahoo is likely to grow and make profits at a rapid pace as it will be avoiding its upfront advertising costs, according to Yahoo News.
Due to legal reasons, the internet website is limiting its access for the users in regions like Iowa, Montana, Arizona and Louisiana, as the fantasy sports could present some grave legal risks. So it has limited its signups for the customers in these regions. The firm is presently looking to acquire more customers for advertisement placement whereas it has its fantasy sports website fully operational and in place. Surprisingly, the company has been a platform for advertisement for a rival service, which in a way could become harmful for its fantasy sports business.
As for the shares of Yahoo, Inc. they have witnessed a change of -3.44% in the past few weeks. Due to this reason, the investors are made to buy the shares of the company at their weakest. In the short term, the company has received a rating of Hold; this rating has been suggested by stock analysts at Zacks and has ranked the firm at 3. 27 Wall street analysts have also commented on the shares of Yahoo out of these 27 experts, 17 have given a rating of Strong Buy while 7 have recommended a rating of Hold. By the stock experts at the brokerage firm Barclays, the rating received is Equal-weight. On Monday, the internet website saw a decline 3.53% and at present the market capital of the firm is $28,543. In the last three months, the firm’s shares have declined by 25.08%.