/// Yahoo’s De Castro Begins Reorg of Ad Sales Unit
As I had previously reported , Yahoo’s key business unit — its advertising sales force — is now getting details of a reorganization by its new leader, COO Henrique De Castro. In making the changes, just weeks ahead of Yahoo’s annual sales conference in Las Vegas on January 21, De Castro is borrowing rather heavily from the set-up of the powerful ad business at Google from whence he came. By shifting the sales organization to a “category” model, sales reps at the Silicon Valley Internet giant will sell all of Yahoo’s ad products, as well as its search offerings, across channels in a vertical process organized around advertiser segments, such as automotive, entertainment and packaged goods. Yahoo has long sold its advertising in a regional and tiered organization against premium and performance inventory in display and search, designed to avoid vertical conflict. Thus, the sales staff have built up advertiser relationships across many areas, which will not work in the new system. Sources inside the company said regional leaders will now be shifted to running various verticals. There will be support specialists for those areas too. Mark Ellis, who was most recently VP of North American sales and global partnerships, will pay a key role in the new org, said sources. It is not clear, though, what role Peter Foster, who has headed audience advertising, will play. Another high-ranking exec, Keith Kaplan, has apparently been shifted to focus on agency relationships. As I had previously written, there are many different ways to organize sales, but making such major change has potentially large ramifications on Yahoo’s financial performance, at least in the short term, since advertising makes up the bulk of its revenue.
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Yahoo’s De Castro Begins Reorg of Ad Sales Unit