MEDIA-I: Yahoo in scramble to polish bruised image

Online corporate giant Yahoo is trying to clean up its image and be a "good corporate citizen" after being criticised by internet users for running forums for racist groups and selling pornography online. The portal is now offering millions of free ads, running into millions of dollars, to charitable causes in an effort to appease consumers and save its brand from being thrashed in the media. The company has already allotted 120 million anti-hate ads worth USdollars 3 million to be featured online for anti-hate groups over a three-year period. The portal, which earlier banned Nazi items from its auctions, confirmed it has been offering adult material under pressure to generate needed revenue. It first defended its sale of pornographic material, but announced shortly afterwards it would remove all porn from its shopping auction channels in the US and would reject requests for related advertising after drawing harsh criticism from internet users worldwide. However, the company could not confirm if porn would still be available at its websites in Asia and countries outside the US. Yahoo marketing manger for Asia, Pauline Wong, said: "In Asia, Yahoo strives to honour the laws and values of its host country and is taking extra measures to make adult products available only to age-appropriate audiences. "We are always looking at ways to improve our service, and we will continue to listen to our users and evaluate our policies in Asia." The free ads will target racial tolerance, the environment, AIDS, disaster relief and equal opportunity in access to technology, according to a Yahoo statement. Yahoo's vice-president of brand marketing, Murray Gaylord, said the initiative is "part of being a good corporate citizen". The negative publicity associated with the porn sales and racial groups on Yahoo has left the portal reconsidering its branding strategy. Yahoo had also reported a first-quarter net loss and announced it would slash staff numbers by 12 per cent as part of its plan to ensure it has "the operating and financial flexibility to deliver long-term value". The company laid off 3,510 employees, sending a warning to other portals that even an internet media giant like Yahoo cannot escape the effects of declining advertising revenues. Wong added, "We're still finding out how the layoffs will affect the Asian Yahoo staff. It's a busy and crucial time for us as we are trying to sort out how these various happenings in the US translate to Asia." While Yahoo brands itself as being all things to all internet users, the portal must now change its strategy and pull back on some of its non-strategic business areas to save costs as it struggles, along with other portals worldwide, with a softening online ad market.

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