Yahoo 2008 Annual Report Download - page 36

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Overview
Yahoo! Inc., together with its consolidated subsidiaries (“Yahoo!,” the “Company,” “our,” “we,” or “us”), is a
leading global Internet brand and one of the most trafficked Internet destinations worldwide. We are focused on
powering our communities of users, advertisers, publishers, and developers by creating indispensable
experiences built on trust. Together with our owned and operated online properties and services (“Yahoo!
Properties” or “Owned and Operated sites”), we also provide our advertising offerings and access to Internet
users beyond Yahoo! through our distribution network of third-party entities (“Affiliates”), who have integrated
our advertising offerings into their Websites, referred to as Affiliate sites, or their other offerings. We generate
revenues by providing marketing services to advertisers across a majority of Yahoo! Properties and Affiliate
sites. Additionally, although many of the services we provide to our users are free, we do charge fees for a range
of premium services.
We provide a range of marketing services that make it easier and more effective for advertisers and marketers to
reach and connect with users who visit Yahoo! Properties and our Affiliate sites. We believe that our marketing
services enable advertisers to deliver highly relevant marketing messages to their target audiences.
Our offerings to users on Yahoo! Properties currently fall into six categories: Front Doors, Communities, Search,
Communications, Audience, and Connected Life. See Part I, Item 1. “Business”—“User Offerings” for additional
information. The majority of our offerings are available in more than 30 languages. We manage and measure our
business geographically. Our principal geographies are the United States (“U.S.”) and International.
Revenue Sources
Marketing Services Revenues. Our online advertising offerings include the display of graphical advertisements
(“display advertising”), the display of text-based links to an advertiser’s Website (“search advertising”), listing-
based services, and commerce-based transactions.
We recognize revenues from display advertising on Yahoo! Properties and on Affiliate sites as “impressions” are
delivered or when qualifying actions are performed by the user. An “impression” is delivered when an
advertisement appears on a page viewed by users. We also recognize revenues from search advertising on
Yahoo! Properties and on Affiliate sites. We recognize revenues from these arrangements as “click-throughs”
occur. A “click-through” occurs when a user clicks on an advertiser’s listing.
Marketing services revenues also includes listings and transaction revenues. Listings revenues are generated from
a variety of consumer and business listings-based services, including access to the Yahoo! HotJobs database and
classified advertising such as Yahoo! Autos, Yahoo! Real Estate, and other services. We recognize listings
revenues when the services are performed. Transaction revenues are generated from facilitating commercial
transactions through Yahoo! Properties, principally from Yahoo! Travel and Yahoo! Shopping. We recognize
transaction revenues when there is evidence that qualifying transactions have occurred. For example, we
recognize revenues when travel arrangements are booked through Yahoo! Travel.
Fees Revenues. Fees revenues consists of revenues generated from a variety of consumer and business fee-based
services, including Internet broadband services, royalties received from joint venture partners, premium mail,
music and personals offerings, as well as services for small businesses. We recognize fees revenues when the
services are performed.
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