Yahoo 2001 Annual Report Download - page 8

YHOO12
Think big. More than $30 billion a year. That’s the size of the classified and Yellow Pages™advertising market
in the U.S. alone. In only a few short years, approximately 10% of those revenues have moved to the Internet,
as more businesses and consumers discover the superior reach, impact and value of online listings. Industry
analysts predict Web classifieds will grow at double-digit rates for years to come.
As one of the world’s leading search and listings destinations, Yahoo! is well positioned to help drive this
trend and win a growing share of this fast-growing market. And we’re moving aggressively to capture the
opportunity in a variety of ways.
Yahoo! acquires HotJobs. In December 2001, we announced a bid to acquire HotJobs one of the leading recruit-
ment sites on the Web. The acquisition, which closed in February 2002, will enable us to significantly broaden
our careers classified business and enrich the services we provide to users. HotJobs is expected to contribute
immediately to revenue growth through listing and subscription fees from both employers and recruiters.
We’re also building strong vertical classified businesses in key areas, including Autos, Real Estate and
Personals (part of Yahoo! Communications). During 2001, we transformed individual listings from a “free” to a
“for-pay” business, with excellent results. In 2002, we plan to aggressively pursue multiple-listing advertisers
— such as auto dealers and real estate agents — with a variety of cost-effective solutions, including some
bundled services.
Working with the top Yellow Pages advertising agencies in the country, we’ve made it easier to buy and
create online ads, creating new opportunities to monetize Yahoo!’s leading position in consumer reach and
usage. We’ve also expanded our relationships with major Yellow Pages partners, such as BellSouth, and
increased revenues from for-pay services that give “Featured Businesses” priority-listing position.
Expanding revenue streams. Through initiatives like Yahoo! Express (a for-pay service that allows businesses to
expedite the review of their listing for inclusion in the Yahoo! Directory) and Yahoo! Sponsored Sites, our
Search and Directory business also produces fee-based revenues. In November, we stepped up those efforts
significantly, forming an alliance with Overture Services to launch Yahoo! Sponsor Matches, a for-pay service
that provides enhanced results-page placement to participating businesses.
We believe that these and other new revenue-producing services present a significant growth opportunity,
complementing our already strong marketing services channel.
Big opportunities in small ads
Alice Chen
Associate Producer
Careers
Listings:
Online classifieds grow in
popularity and market share.
So many things can be done better online than offline. Careers advertising has proven to be a perfect example. Recruiters and job
seekers are turning to the Web in growing numbers because it produces significantly better results. Our acquisition of HotJobs puts us
at the heart of one of the largest — and potentially most profitable — long-term opportunities on the Internet.