Yahoo 2007 Annual Report Download - page 14

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 Yahoo! Properties or on our Affiliate sites. 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 Affiliate
sites, two sets of results will appear based upon algorithmic and sponsored search technology. Links to Websites for
related advertisers 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 revenues when click-throughs occur.
As a result of the acquisition of Right Media in 2007, Yahoo! expanded its advertising marketplace to enable
advertisers and publishers to find and utilize ad inventory in an open auction. We generate revenues from this
exchange, by charging a fee to all exchange clients that participate in a transaction. Through the exchange,
advertisers can select and bid on multiple display advertising opportunities across various publishers, enabling them
to expand the reach and performance of their campaigns. Publishers can select which inventory they place into the
open auction, increasing the potential monetization for their entire inventory. We expect the exchange to be a key
component of Yahoo!’s future growth in marketing services by providing more options to advertisers and publishers
as well as creating an even larger, more vibrant advertising marketplace.
In addition to offering marketing services to advertisers and publishers, we also provide the following services:
Yahoo! Broadband has partnered with a number of broadband Internet access providers to provide a suite of Internet
services for their customers including portal, search, display advertising, and mail services. We have strategic
partnerships with AT&T Inc. (“AT&T”) and Verizon Communications, Inc. in the U.S., BT Telecommunications
PLC (“BT”) in the United Kingdom, and Rogers Cable Inc. (“Rogers”) in Canada. We also launched a broadband
partnership with Telecom New Zealand in mid-2007. We renewed contracts with Rogers and BT in late 2007, which
will be in effect in early 2008.
We have structured new Broadband Internet access partnerships to reflect current market dynamics and placed BT,
Rogers, and AT&T among our key ad network partners with a revenue sharing model.
Yahoo! HotJobs is one of the leaders in the online recruiting industry, providing comprehensive solutions for
employers, staffing firms, and job seekers. Yahoo! HotJobs’ tools and advice put job seekers in control of their
career search and make it easier and more cost-effective for recruiters and employers to find qualified candidates
compared to traditional methods. Yahoo! HotJobs enables job seekers to create an online resume and to search and
apply for jobs, and provides access to newsletters, online forums, and salary research, free of charge. Yahoo!
HotJobs generates revenues from employers and staffing firms that pay to access our database of job seekers and use
our tools to post, track, and manage job openings.
Yahoo! Small Business provides a comprehensive and integrated suite of fee-based online services including Yahoo!
Domains, Yahoo! Web Hosting, Yahoo! Business Mail, and our e-commerce platform called Yahoo! Merchant
Solutions. By integrating one of the leading hosting solutions with business critical services and information,
Yahoo! enables our Small Business Partners to easily get online, sell online, and market and promote online.
Yahoo! Small Business generates revenues primarily from user subscription fees.
GLOBAL BUSINESS
We measure our business geographically based on two segments: the United States and International. Additional
information required by this item is incorporated herein by reference to Note 15 — “Segments” of the notes to the
consolidated financial statements, which appears in Part II, Item 8 of this Annual Report on Form 10-K.
We provide services in more than 20 languages in more than 30 countries, regions, and territories, including
localized versions of Yahoo! in Argentina, Australia, Austria, Brazil, Canada, China, Finland, France, Germany,
Greece, Hong Kong, India, Indonesia, Italy, Japan, Korea, Malaysia, Mexico, Netherlands, New Zealand,
Philippines, Russia, Scandinavia (Denmark, Norway, Sweden), Singapore, Spain, Switzerland, Taiwan, Thailand,
the United Kingdom and Ireland, the United States, and Vietnam.
Outside of native English speaking countries, we provide some of our most popular starting point services through
Yahoo! Asia (our English Language portal to Southeast Asia), Yahoo! Chinese (United States Chinese language
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