Yahoo 2006 Annual Report Download - page 7

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Right Media, the largest emerging online
advertising exchange for buying and
selling ad inventory, and also joined the
Right Media Exchange. We are committed
to remaining the fi rst and most attractive
choice for display advertisers.
Yahoo! also extended its leadership in
mobile advertising with the launch of
sponsored search ads on Yahoo! Mobile
Web in the U.S., U.K., and Japan in 2006
and the launch of display ads on Yahoo!
Mobile Web in 20 countries in the fi rst
quarter of 2007.
Looking ahead, we also are transforming
the way we approach online advertising.
Consistent with the principles of our
internal reorganization, some of the most
important changes we are making include:
• Align around the customer: We are
moving beyond selling in terms of either
“display” or “search” advertising and
making the customer our organizing
principle. We plan to bring to bear all of
Yahoo!’s resources to help our customers
connect with consumers. We will offer
them the most effective integrated
solutions across all formats—whether
just one or a combination of display,
search, video, or text, as well as different
targeting options and various forms of
inventory.
• Extend and broaden our ad network:
Being an ad network means that we will
give our advertisers the ability to connect
with their target customers wherever
they are on the Internet. We are already
a major ad network through our search
marketing affi liate relationships. We intend
to build on this strong base by creating a
network in display and listing advertising.
We took strong steps in this direction
in 2006 and early 2007 through the
agreements we struck with eBay, to begin
selling graphical and sponsored search
advertising on their network, and the
ever-growing consortium of newspapers,
through which we will integrate search,
local content and job listings.
• Transition to audience-based selling:
Yahoo! previously sold inventory primarily
based on specifi c properties, such as
Yahoo! Finance or Yahoo! Sports. As
our targeting capabilities become more
sophisticated, we are working with
marketers on more effective buying
practices by targeting audiences based on
demographics, geography and behavior
across the Yahoo! network. Instead of
October, we acquired a 20% holding in