Yahoo 2005 Annual Report Download - page 11

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5
audiences shift toward the Internet from traditional media. We are committed to capitalizing on this shift
and helping our advertisers create and execute Internet marketing solutions that both engage users to
interact with our advertisers’ brands as well as provide valuable insights into their customer base. We
utilize our continuing research of the marketplace and our understanding of our users and their interests
to offer a suite of targeted marketing services for our advertisers to meet the full range of their needs from
brand building, to consumer awareness, direct marketing, lead generation and commerce services. Our
offerings enable marketers to display their advertisements in different formats and in different locations on
the Yahoo! Properties and our affiliates’ websites.
Advertisers can display graphical advertisements across the Yahoo! Properties on the pages that are
viewed by our users. Yahoo! offers a broad range of tools available for online display advertising,
including rich media, video and targeting. We work with our advertisers to maximize the effectiveness of
their campaigns by optimizing advertisement formats and placement on the network. We also use our
targeting capabilities to help advertisers reach their desired audiences by placing contextually relevant
advertisements on our pages. For these advertising services, we earn revenue as “impressions” are
delivered. An “impression” is delivered when an advertisement appears in pages viewed by users.
Advertising is also provided through a series of search offerings that enable advertisers to display text
based links to their websites on the Yahoo! Properties as well as on our affiliates’ websites. These
advertisements are displayed in response to different user actions — when a keyword is used in a search
query initiated by a user or when specific content is being viewed by a user on the Yahoo! Properties or on
the networks of our affiliates. For example, if a user searches using the keyword “television” in the Yahoo!
Search box or the search box on the website of one of our affiliates, links to websites for advertisers selling
televisions will appear alongside the algorithmic search results. As another example, if the user is reading
an article about interest rates, he or she may be presented with advertising links to websites for
mortgage-related advertisers. For these advertising services, we earn revenue when “click-throughs” occur.
A “click-through” occurs when a user clicks on an advertiser’s listing. Such advertising services will be
referred to as “search marketing.”
We also provide services that allow businesses to list information on the Yahoo! Properties, which can be
accessed by our users. For example, a company can include job postings on our Yahoo! HotJobs site or
include information about its business in our Yahoo! Local Enhanced Listing Service. We earn revenues
as these listing services are provided.
OFFERINGS TO USERS
Our offerings to users on our Yahoo! Properties currently fall into four categories: Search; Marketplace;
Information and Entertainment; and Communications and Connected Life.
Search
Our Search offerings are often the starting point for users navigating the Internet and searching for
information, whether from their computer or mobile device. Our vision is to enable users to find, use,
share and expand all human knowledge, and we have made it our mission to provide the world’s most
valued and trusted search experience for users, publishers, advertisers and developers. Our Search
product offerings include the following:
• Search — Yahoo! Search; Yahoo! Desktop Search; Yahoo! Toolbar; and Yahoo! Search on Mobile
• Local — Yahoo! Local; Yahoo! Yellow Pages; and Yahoo! Maps