Yahoo!'s provision of traffic conditions is about local advertising

Dec.27.04 | About: Yahoo! Inc. (YHOO)

Yahoo! said that it will begin providing real-time information about road traffic conditions. According to the press release, Yahoo! will provide information about construction, road conditions (including weather), and traffic speeds.

What does Yahoo! gain from this? Yahoo! will offer another highly useful service that will ultimately integrate nicely with Mapquest. And that will provide an excellent context for local advertising. The challenge will be to get local advertisers online. Yahoo!'s Mapquest service, meanwhile, seems to have greater mind share than map services from Google and MSN.