MAM
Yahoo!!, Google erode ad dollars from traditional media houses
MUMBAI: The 10 largest information companies seem to be feeling the some heavy duty revenue heat. Here’s how… According to a report put out by research and advisory firm ‘Outsell’, the astounding revenue growth registered by both search engine majors Google and Yahoo!! is coming at the expense of the 10 largest information companies in what is a $263 billion industry.
The poignant question here is with the explosion of spending on search engine advertising continues to alter the marketing scape; have there been any ramifications for traditional information entities?
Without doubt, search advertising has taken off in a big way which has in turn seen traditional informative publications normal advertising revenues dip as funds have been diverted to Google and Yahoo!. A widely used quote from Outsell’s report gives a fair idea of the search engine advertising affect in a rather candid manner: “they’re [Google and Yahoo!] literally sucking the financial air out of the room.”
The ten information companies that have been referred to are – Daily Mail & General Trust, Gannett, McGraw-Hill, Pearson, Reed Elsevier, Reuters, Thompson, Tribune, VNU, and Wolters Kluwer.
Apparently, money that has originally been set aside for traditionally advertising with these companies has been diverted to be used for search advertising. Outsell reports that the 10-member group generated a combined revenue of $60 billion in 2004, which is $4 billion more than the previous year. Google and Yahoo! alone generated $6.5 billion in 2004, which also indicates a year-over-year increase of $4 billion.
The extraordinary growth of Google and Yahoo! has been attributed to the marketing and advertising spending that would have gone to the other 10 companies, particularly newspapers and B2B trade magazine. The reason partially for the shift is due to the fact that marketers are paying too much for print ads or too little for online ones, according to Outsell.
This puts the traditional media companies into a tough mode in terms of garnering ad dollars. Many newspapers get more than half their revenues from classified, which are really susceptible to the type of ads that Google and Yahoo! are offering.
Also, another important point in note being the ROI efficiency that are generated by search related advertising which draw more advertising dollars, reducing the overall amount that is allocated towards traditional ad methods like yellow page listings and print ads.
This new trend may not essentially spell doom for traditional media outlets. Although, what it does point out is that search engine marketing has gone mainstream. Another possibility that might emerge is that marketers might demand a more cost effective pricing from traditional media houses as they have already experienced marketers that have experienced the low cost per click (CPC) with search advertising.
Nevertheless, with businesses discovering how lucrative search engine marketing programs can be, traditional outlets have already started looking for ways to get back in the game.
Brands
Wipro hires 7,500 freshers, withholds FY27 hiring outlook
Profit rises to Rs 3,522 crore, Rs 15,000 crore buyback announced.
MUMBAI- Hiring may be on, but visibility is off, Wipro is adding talent even as it pauses the crystal ball. The company hired 7,500 freshers in FY26 but stopped short of offering any hiring outlook for FY27, underscoring the uncertainty gripping the IT services sector as it pivots towards an AI-led operating model.
The disclosure came alongside its fourth-quarter earnings, where management flagged volatile demand conditions and refrained from committing to future workforce expansion. Chief human resources officer Saurabh Govil noted that over 3,000 of the total hires were onboarded in the March quarter alone, signalling continued intake despite a lack of clarity on deployment pipelines.
This divergence active hiring without forward guidance reflects a broader industry pattern where talent acquisition continues even as deal conversions remain uneven and client spending cycles stretch. Wipro expects its IT services revenue for the June quarter to range between a decline of 2 per cent and flat growth sequentially in constant currency terms, reinforcing near-term caution.
Chief executive officer Srini Pallia pointed to artificial intelligence as both a disruptor and an opportunity. He said evolving client priorities are pushing the company towards outcome-driven engagements, with Wipro increasingly focusing on a services-as-software model through its AI Native Business and Platforms unit. The shift marks a structural change from traditional headcount-led growth to AI-enabled delivery frameworks.
The company has already committed over $1 billion to its AI ecosystem, with investors closely watching how these investments translate into revenue. For now, the numbers present a mixed picture. Net profit rose sequentially to Rs 3,522 crore, while revenue grew 3 per cent to Rs 24,236 crore. However, core IT services performance remained under pressure, with full-year revenue declining 0.3 per cent in dollar terms and 1.6 per cent in constant currency.
Large deal bookings offered a counterpoint, rising 45.4 per cent year-on-year to $7.8 billion, highlighting a widening gap between deal wins and actual revenue realisation. On a quarterly basis, IT services revenue slipped 1.2 per cent sequentially, signalling continued softness in execution.
Margins, however, told a more optimistic story. Operating margins expanded to 17.3 per cent in the fourth quarter, up from 14.8 per cent in the previous quarter, reflecting improved cost discipline. That said, the company cautioned that upcoming wage hikes and the ramp-up of large deals could exert pressure going forward.
Attrition stood at 13.8 per cent in the March quarter, indicating stabilisation after periods of elevated churn. Alongside its earnings, Wipro also announced a Rs 15,000 crore share buyback, reinforcing its focus on shareholder returns, with a payout ratio of 88 per cent over the past three years.
Taken together, the numbers capture a company in transition investing in AI, maintaining hiring momentum, but navigating a demand environment where growth is uneven and visibility remains limited.
