Yahoo 2003 Annual Report Download - page 13

Download and view the complete annual report

Please find page 13 of the 2003 Yahoo annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 94

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94

Content Match allows businesses to place listings on more southeast Asia), Yahoo! Chinese (U.S. Chinese language
locations on the Web and drive more traffic to their sites. site), Yahoo! en Espa˜
nol (U.S. Hispanic site), Yahoo!
Content Match displays listings when Internet users are Canada en Fran¸cais (French Canadian) and Yahoo! en
viewing related content on the Yahoo! network or our Catal`
a (part of Yahoo! Spain’s Catalan language offerings).
affiliates’ pages. For example, if the user is reading an Outside the English-speaking markets, we have built inde-
article about interest rates, he or she could find links on pendent directories of local language Websites and other
the side of the page for mortgage-related advertisers. Simi- content, developed by native speakers of each language.
larly, users who are researching vacation plans may see We own a majority or 100 percent of these non-U.S.
listings for hotels and rental car agencies. operations (except in Japan), and have established offices
internationally to facilitate the local development of these
Paid Inclusion
businesses. We have pursued a consistent strategy of con-
tent aggregation with leading third parties and currently
Paid Inclusion guarantees that our customers’ Websites are plan to continue to rollout certain selected services for our
included and frequently updated in the index that is international markets.
crawled by the search engine. Customers may pay fees
based on sales leads or click-throughs powered by our Our joint ventures with SOFTBANK and its affiliates, a
search services. Customers may also pay a fixed fee that holder of approximately four percent of our common
provides inclusion in the Web search index and an auto- stock as of December 31, 2003, include Yahoo! Germany,
matic 48-hour refresh of the submitted content. Through Yahoo! United Kingdom, Yahoo! France (collectively
our paid inclusion programs, customers submit informa- ‘‘Yahoo! Europe’’), Yahoo! Japan and Yahoo! Korea. These
tion often not normally available by traditional Web joint ventures were formed to establish and manage local
crawling techniques and this information is included in versions of our properties in the respective countries. With
our Web search index. the exception of Yahoo! Japan, these joint ventures are
operated and managed by us as a part of our global net-
Algorithmic Search
work. Yahoo! Japan is a publicly traded company in Japan
Our Algorithmic Search services provide search results to that is majority owned by SOFTBANK. As of Decem-
some of our affiliates, who in turn incorporate these ber 31, 2003, we owned approximately 70 percent of
results into their online offerings to end users. Our search Yahoo! Europe, 34 percent of Yahoo! Japan and 67 per-
engine uses proprietary technology to crawl the Web, cent of Yahoo! Korea. Yahoo! Europe and Yahoo! Korea
index and serve Web results on text-based queries. Cus- are consolidated subsidiaries of Yahoo! Inc. The Company
tomers pay per-query search fees based on query volume. has no funding commitment to Yahoo! Japan. As of
December 31, 2003, SOFTBANK and its affiliates owned
GEOGRAPHIC PROPERTIES the remaining interests in Yahoo! Europe and Yahoo!
Korea not owned by Yahoo! and its affiliates.
We seek to build upon our global user base by developing
Internet properties and services focused on geographic REVENUE CLASSIFICATIONS
regions, which include foreign countries as well as domes-
tic metropolitan areas. We have launched numerous geo- Marketing services revenue is primarily generated from the
graphically targeted Web properties and search services. sale of rich media advertisements (banner and other media
Additional information required by this item is incorpo- advertisements), sponsorship and text-link advertisements,
rated herein by reference to Note 12 – ‘‘Segments’’ of the (including pay-for-performance search advertisements),
Notes to the Consolidated Financial Statements, which paid inclusion, algorithmic searches and transactions reve-
appears in Item 8 of this Annual Report on Form 10-K. nue. Banner and other media agreements typically consist
of targeted and non-targeted advertising that appears on
Yahoo! Inc. and its subsidiaries provide products and ser- or around pages within the Yahoo! network. Sponsorship
vices in 13 languages in over 20 countries, including agreements take many forms including: high profile pro-
localized versions of Yahoo! in Argentina, Australia & motions that are typically focused on a particular event,
New Zealand, Brazil, Canada, China, France, Germany, such as a sweepstakes; third party branded content inte-
Hong Kong, India, Italy, Japan, Korea, Mexico, Singapore, gration into our properties allowing marketers to provide
Spain, Taiwan and the United Kingdom & Ireland. We information about their products to consumers; and
also provide services through Yahoo! Asia (our portal to
7