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Yahoo Needs To Open APIs

Posted on Monday, Jun 12th 2006

The last few weeks, I have noticed that every time I log into MyYahoo, the large banner ad it shows me is that of Netflix. That too, a Netflix ad that is geared towards acquiring new customers.

I have been a loyal Netflix customer for at least 5 years. This ad is wasted on me.

This makes me wonder how difficult it would be to correlate Yahoo’s customer accounts with Netflix’s, and target the ads with much more precise and personalized messages.

For me, the message from Netflix that might make sense is that of an upgrade suggestion to their 8-at-a-time offering from my current 4-at-a-time subscription level.

However, as it stands, such personalization systems do not exist. To achieve such personalization, media giants like Yahoo would need to come up with open, secure API’s, and companies like Netflix would need to invest in integrating their CRM systems with Yahoo’s advertising management system.

In the increasing precision of targeting online advertising, such moves could generate tremendous efficiency and value.

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