Yahoo
Consider the most successful celebrity news destinations online, and something else jumps to the top. For more than a year, one site has attracted more eyeballs than any other in the realm of celebrity gossip: Yahoo Inc.s omg.
With a dedicated staff of just five people, and more than a dozen shared with other Yahoo sites, the company has settled on a formula that Yahoo Media Group head Jimmy Pitaro calls “highly profitable,” though Yahoo wont reveal details.
The fact that Yahoos entertainment site outdraws rivals that aim to break news - such as TMZ.com, which broke the news of Michael Jacksons death - helps illustrate that success online doesnt always mean being first and having exclusives.
It also marks a rare success for the struggling Internet portal, which has shed thousands of employees and shuttered several businesses, a process CEO Carol Bartz accelerated after being hired in January.
While Bartz said at a shareholders meeting in June that she felt too many entertainment stories make Yahoos front page, Pitaro said shes a solid supporter of the companys media properties in general.
Omg puts a light, positive spin on articles and other tidbits that mostly come from other news organizations such as Access Hollywood and The Associated Press. The vital placement of omg links and blurbs on Yahoos home page gives it access to some 500 million unique visitors a month.
The strategy has vaulted the 2-year-old site past People and TMZ, both units of Time Warner Inc., as well as other popular celebrity sites like PerezHilton.com.
According to the latest figures from tracking firm comScore, omg clocked 20.6 million unique visitors in May, a 65 percent increase from a year ago and more than No. 2 TMZ and No. 3 People combined.
The majority of the omg traffic comes from people who click through Yahoos home page, which critics and competitors view as giving it an unfair advantage. Although omg readers view on average half the number of pages once they arrive - about 16 compared with 29 for all entertainment news properties - the site is still top-ranked in overall page views in the category.
Other large media organizations have taken notice. In February, Microsoft Corp. and Hollywood production company BermanBraun jointly launched Wonderwall with a similar strategy of drawing traffic from a large portal - in this case, Microsofts MSN. Like omg, Wonderwall runs on a small staff, about a dozen full time.
“Our traffic has been beyond any estimates that any of us had projected,” said BermanBraun co-owner Lloyd Braun, a TV executive and former head of the Yahoo Media Group.
In April, the last month its data were broken out, Wonderwall had 9 million unique visitors, putting it past People and into third behind TMZ had it been ranked by comScore among other entertainment news sites.
Omg, like its rivals, says it has been gradually succeeding at deriving more of its traffic “organically,” through search queries or people bookmarking the pages. But theres no question traffic from the portal helps it stand out among some 1,000 or so celebrity news sites that have popped up, and occasionally dropped out, over the past several years.
The tone of omg, like Yahoo itself, is bright, breezy and nonjudgmental. Blurbs written by omg staff link to original stories and photos elsewhere on Yahoo or at other sites.
Following Jacksons unexpected death, omg took a respectful, celebratory view of the pop icons life through photo galleries and celebrity reaction stories, leaving the hard-driving news pieces to Yahoos front page and news site.
“We just like to tell the happy view on whats going on in the entertainment world,” said Sibyl Goldman, an entertainment group vice president.
That bright spin has attracted advertisers worried that appearing next to salacious scandal stories would turn off some consumers. State Farm Insurance Cos. has sponsored a series of short celebrity-mom interviews, targeting mothers in a conflict-free format that avoids some of the celebrity muckraking of other sites.