Il presentation v3 1

CONFIDENTIAL YAHOO! Do not distribute 1

Global Web Trends

Yahoo! Inc.

July 16th, 2009


To be your Home on the Internet.

To be the “Must Buy” and “Partner of Choice” for

the Top Advertisers and Agencies in the World.


(China)

(Australia)

(Philippines)

(Hong Kong)

(India)

(Korea)

(UK)

(Indonesia)

(Germany)

(Malaysia)

(Singapore)

(Thailand)

(Spain)

(France)

(Italy)

(Taiwan)

(Japan)

(Vietnam)

(Argentina)

(Brazil)

(Canada)

(US)

(Mexico)

(en Espanol)

Yahoo! reaches 500 million users everyday in 38 markets and 30 languages• #1 Start Page in the world : http://yahoo.com

• #1 in Personalization: more online users personalize their Start Page with Yahoo! than with

any other portal

Yahoo! ???


“If you don't like change, you're going to like

irrelevance even less” –Eric Shinseki

CONFIDENTIAL YAHOO! Do not distribute 5Source (left chart): eMarketer, May 2007

Millions of Internet Users Worldwide

Source: 5 (August 2005) and US Census

Bureau, International Data Base

Planetary Trend #1: Global Online

Audience/Growth

1,038

1,135

1,229

1,328

1,4211,500

2005 2006 2007 2008 2009 2010


NASDQ March 10, 2000 - 5,048.62

Stock Market vs Global Internet Audience

1.4 Billion +

Internet Users

250

750

500

1500

1000


Massive Online Audience in

Asia


Global Internet Usage

China

JapanSouth Korea

CanadaUS

Mexico France GermanyBrazil

UK

Russia

India

0%

5%

10%

15%

20%

25%

0% 20% 40% 60% 80% 100%

% Internet Users Broadband

% W

eekly M

edia C

onsumption

Ipsos “The Face of the Web” 2005 &

Population Reference Bureau 2006 data

Size of circle represents total audience

Planetary Trend #2: BB Penetration


-3%

0%1%

10%

0%

-10%

-15%

-10%

-5%

0%

5%

10%

15%

Broadcast Box Office Cable/Satellite Internet

Source: Veronis Suhler Stevenson Communications Industry Forecast (2006)

Media Expected Growth Rates from 2005 to 2009 (U.S.)

Newspapers Magazines

Major Shift In Media Consumption


• Broad reach to quality audiences

• Unmatched consumer insights

• Increased relevance and engagement

• Partnership for results

Yahoo! Selling Strategy focuses on:


Overview of Advertising

Products and Platforms


Two Types of Registration Paths

�Call to action takes place

offline

�Brand exposure

�Should be CPM deal

�Clear and defined call to

action

�Easy registration path

�Can test metrics to optimize

performance

�Lead generation

�ROI Focused, should be

performance deal (CPC or

CPA)

Branded Campaigns DR or Performance


CPT vs. CPM vs. CPC vs. CPA

CPT (cost-per-time):• Payment for placement by time (1 day, week, month)

CPM (cost per 1000 impressions):• Payment for each impression served by publisher

CPC (cost-per-click): • Payment based on user clicking ad, several impressions required to get 1 click

• Click dependent on appeal of specific ad presented to a given user

• Algorithm to match ad “library” to user and inventory characteristics

CPA (cost-per-action):• Click required on ad (same factors as per CPC)

• Payment also dependent on effectiveness of advertiser experience to get user to complete action

• Advertiser must be able trace action to initial ad to correctly attribute payment

Publisher

Preference

Advertiser

Preference

CPM

CPC

CPA

CPT


Advertising Products

•CPM Guaranteed placement (class 1)• Placement is priority: context, audience, ad spot, views per time

period/user etc. can be defined by advertiser

• Metrics: Share of voice, impressions, ad placement and audience characteristics

•CPM Non-Guaranteed placement (class 2)• Run of Network: Specific placement not critical - vertical, context and # of

views may not be specified by advertiser

• Metrics: Actual impressions delivered for invoicing

•CPC/CPA: Performance pay per action• Billing not based on number of impressions served

• Payment occurs when user clicks on ad or action is taken

– Revenue maximized when publisher learns optimal placement to maximize click-through-rate (context, geo and audience) for a given advertiser creative

16

The Performance Buying Challenge

Direct response advertisers have traditionally relied on

performance-based or affiliate networks as a primary online

acquisition channel.

> Limits the risk of a campaign failing by paying only for customer

leads or acquisitions

> Provides access to an aggregate population of publishers

> Minimizes workflow

The model has limitations: control, visibility into true acquisition

costs, and optimization ( ensuring value > cost)


Qualifying advertisers for CPL/CPA

>Budget minimum: > $25K USD per month

>Detailed understanding of current campaign performance metrics

>Current purchaser of Y! Non-Guaranteed inventory

>Extensive creative / offer catalog

>“Action” pixel <4 pages deep, high user engagement, and clear calls to action en-route.

Key criteria for qualifying advertisers:

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CPL/A - How does it work?

> Phase 1: Learn your metrics (if necessary)

Advertiser invests to understand metrics and best

placements on Y!

> Phase 2: Launch performance campaign

Advertiser launches performance campaign utilizing

invested learning.

> Phase 3: Optimize your performance campaign

Y! Account Executive works with advertiser to

optimize around key metrics.


KEY TAKEAWAY:

CPM is the next logical step in the evolution

of internet advertising growth

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