Yahoo predicts revolution in online toys and clothes sales

Yahoo co-founder Jerry Yang has predicted that the next industries to take advantage of the online commerce revolution will be healthcare, toys, sporting goods and clothes because they benefit from a direct, continually updated relationship with the consumer.

Delivering a keynote speech at Spring Internet World in Los Angeles last week, Yang said: 'Things that need a direct relationship with the consumer suit the Web. News, sport and financial services have flourished because of their real-time nature. These other industries suit the Web.'

Yang also hinted that Yahoo may change its advertising method from simple banners to more complicated marketing tools.

'People can ignore banner ads and they do not have their own space, like TV ads,' Yang said. 'We can now compare Yahoo's reach and demographic splits with traditional media - we have to add value, though.'

Yang stressed that Yahoo's move from search engine to Web media company, echoed strongly by rival Excite, was crucial to the company's success and that its advertising strategy should evolve in a similar way.

He added that while the Web is a global medium, it is local too. 'It is not a US-dominated medium, even if it is mostly here now.'