The report points to coming partnerships that may add $80 million in display ad dollars to the company's fiscal 2008 revenues. The firm also expects demand for Internet display ads to increase as traditional ad dollars move online at a faster clip due to shrinking TV audiences caused by the writers' strike.
A jump in political advertising in 2008--expected by JPMorgan to surpass $600 million--should also benefit online advertising. Yahoo is also expected to meet the firm's estimate for display ad revenue in the fourth quarter of 2007, with year-over-year growth of 20%. The firm also believes Yahoo is on track to hit its growth estimates of 23% for search through the continued rollout of its Project Panama search marketing platform.
--Mark Walsh