Yahoo partnered with Paperless Post
In the previous part of the series, we discussed how vital mobile search business is for Yahoo. In this part of the series, we’ll discuss the improvements Yahoo (YHOO) made in Yahoo Mail to increase user engagement.
During the fourth quarter earnings call, Yahoo’s management said that the company plans to foster growth for its display ad business by increasing user engagement on Yahoo Mail and improving digital content across all of its platforms.
In Q4, Yahoo partnered with online invitation and stationery giant, Paperless Post. Yahoo Mail users can now use 50 beautiful designs from the new stationery feature to personalize email messages.
When Yahoo Mail was updated in 2013, the company had eliminated the stationery feature because it had become old and outdated. But after the huge demand from its users, Yahoo decided to bring it back. As of now, stationery is available to Yahoo’s webmail users. The company will expand the feature to its mobile products, international markets, and email partners in the future.
Google opens up its Gmail platform to improve user reach
Google (GOOG) also made a similar move last year in order to increase user reach and engagement with its mail service, Gmail. Google opened up Gmail as a platform for developers to develop applications. These applications benefit users, as the apps arrange the inbox better and also act as a reminder for important notifications.
Gmail’s reach is well below Facebook’s among smartphone apps in the US
According to a report from comScore and as the above chart shows, even though email has become an essential element in people’s lives, Gmail’s audience reach is below Facebook’s (FB) and Pandora’s (P) on smartphones in the US. The Facebook app’s reach on smartphones in the US is about 74% and is way higher than Gmail’s, at 41.6%. Although Google’s other platforms, such as Google Play, YouTube, and Google Search, fare better than Gmail, they’re nonetheless still behind Facebook.
If you are bullish about Yahoo’s improvements in Yahoo Mail, you can consider ETFs such as the iShares Core S&P 500 ETF (IYW). Yahoo makes up 1.1% of IYW’s portfolio.