For a number of years Yahoo was the most visited website on the Internet in the United States and around the world. Today, Yahoo has slipped to be the fourth most visited website in the United States and around the world, as Google, Facebook and YouTube (owned by Google) have all passed Yahoo in the number of daily visitors on a global basis. Here is why Yahoo can't compete with Google and Facebook.
Yahoo can't compete with Google and Facebook because Yahoo pays for the content that is the lifeblood of the company. Neither Google or Facebook pays for the content that is the lifeblood of their companies. That's why both Google and Facebook have passed Yahoo is popularity.
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Google does not pay for web content. Google's bots scour the Internet looking for content which Google then logs and categorizes for users who go to Google to search for Internet content. At this point, Google gets virtually all the content it puts into its search engine for free. All Google incurs as costs is the amount of money it takes to run its search service.
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Facebook also does not pay its users to create the content on Facebook that keeps people visiting Facebook everyday. The users of Facebook create the content that keeps people using the site. And Facebook users create the content for free.
From photos, videos, updates, chats or whatever people do on Facebook, the website doesn't pay people anything to create that content. All Facebook does is provide the portal or place where people go to interact with content they create for free.
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Yahoo does pay people to create the content that they show on the site. From full-time writers, content producers and editors, to independent contractors and third-party content that Yahoo buys, the company incurs costs for the content displayed on Yahoo.
It is the content displayed on Yahoo that keeps people coming back to the site. Without that content, Yahoo would see a drastic drop in people visiting the site.
Yahoo Pays for Content While Google and Facebook Do Not
If we look over the three main websites, Google, Facebook and Yahoo, we see a huge difference in the way the three companies get the content that causes people to visit each website on a daily basis.
Google acquires its content basically for free by scouring the web for it with its bots, and then logging and categorizing the content for its search engine. The search engine is why people visit Google.
Facebook acquires the content that keeps people using its site daily for free, as its users create that content at no cost to Facebook. Facebook doesn't pay anyone to use its site and create photos, videos, chats and updates that keeps people using the site.
Yahoo on the other hand does pay people to create content for its site. Yahoo employs a large staff of in-house writers, editors and content producers, plus it also purchases content from independent contractors and third-party sites to display on its webpage.
From a business model standpoint, because Yahoo pays people to produce the content on its site that keeps people coming to Yahoo on a daily basis, the company is at a distinct disadvantage compared to Google and Facebook. Neither Google or Facebook pays people to produce the content that keeps people coming back to both of those websites on a daily basis.
Yahoo Can't Compete with Google or Facebook
Because Yahoo pays for the content it displays on its website, while Google and Facebook do not, Yahoo can't compete with either Google or Facebook. The extra cost Yahoo incurs to produce its content, a cost neither Google or Facebook incurs, places Yahoo at a distinct disadvantage to both Google and Facebook.
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