Yahoo 2008 Annual Report Download - page 4

as Yahoo! Japan, Alibaba.com in China, andas Yahoo! Japan, Alibaba.com in China, and
Gmarket in Korea, which collectively amountedGmarket in Korea, which collectively amounted
to $9.4 billion at year-end. In April 2009, weto $9.4 billion at year-end. In April 2009, we
announced an agreement to sell our 10%announced an agreement to sell our 10%
interest in Gmarket to eBay.interest in Gmarket to eBay.
2008 ACHIEVEMENTS & MILESTONES2008 ACHIEVEMENTS & MILESTONES
Improving Yahoo! for Users:Improving Yahoo! for Users: Despite the Despite the
conditions the Company faced in 2008,conditions the Company faced in 2008,
Yahoo!’s compelling products continuedYahoo!’s compelling products continued
to attract millions of engaged users: pageto attract millions of engaged users: page
views of Yahoo! properties grew 19% inviews of Yahoo! properties grew 19% in
2008 over 2007.2008 over 2007.
Yahoo!’s homepage remains a key startingYahoo!’s homepage remains a key starting
point on the Internet for hundreds of millionspoint on the Internet for hundreds of millions
of users, and we’re working hard to make itof users, and we’re working hard to make it
more open, social, and relevant. We beganmore open, social, and relevant. We began
testing a new homepage design, which willtesting a new homepage design, which will
allow Yahoo! and our users to do even moreallow Yahoo! and our users to do even more
to personalize experiences. We also initiatedto personalize experiences. We also initiated
new content optimization capabilities andnew content optimization capabilities and
launched Yahoo! Buzz, which allows users tolaunched Yahoo! Buzz, which allows users to
vote on and “buzz up” their favorite stories.vote on and “buzz up” their favorite stories.
Yahoo! Search introduced innovative featuresYahoo! Search introduced innovative features
and capabilities at a much faster pace overand capabilities at a much faster pace over
the last year, rolling out enhancements likethe last year, rolling out enhancements like
Search Assist, to give users suggestions asSearch Assist, to give users suggestions as
they search, as well as SearchMonkey, to givethey search, as well as SearchMonkey, to give
website owners control over how their siteswebsite owners control over how their sites
appear in search results. This improved rateappear in search results. This improved rate
of innovation drove results, and query growthof innovation drove results, and query growth
was strong in 2008. I believe Yahoo! Search iswas strong in 2008. I believe Yahoo! Search is
a very valuable part of our business; it’s benefi-a very valuable part of our business; it’s benefi-
cial to our franchise to deeply understandcial to our franchise to deeply understand
what users are looking for when they arewhat users are looking for when they are
online. We have some of the biggest brainsonline. We have some of the biggest brains
in the business working hard to make searchin the business working hard to make search
results more compelling and get users to whatresults more compelling and get users to what
they want with fewer clicks.they want with fewer clicks.
The next generation of Yahoo! Mail also tookThe next generation of Yahoo! Mail also took
shape in 2008, bringing together email, instantshape in 2008, bringing together email, instant
messaging and mobile text messaging. We’remessaging and mobile text messaging. We’re
adding and testing new Mail features includingadding and testing new Mail features including
a “smarter inbox,” allowing users to filter anda “smarter inbox,” allowing users to filter and
prioritize messages from personal connections.prioritize messages from personal connections.
We’re also improving functionality andWe’re also improving functionality and
usability, and there’s much more to come.usability, and there’s much more to come.
We successfully deployed several mobileWe successfully deployed several mobile
innovations last year as well, including theinnovations last year as well, including the
new version of our award-winning Yahoo!new version of our award-winning Yahoo!
oneSearch product, which now featuresoneSearch product, which now features
voice-enabled search. With the announcementvoice-enabled search. With the announcement
and launch of Yahoo! Mobile, a mobile startingand launch of Yahoo! Mobile, a mobile starting
point to the Internet that is now availablepoint to the Internet that is now available
on hundreds of devices via the mobile Web,on hundreds of devices via the mobile Web,
we are doing even more to help peoplewe are doing even more to help people
discover, stay connected and stay informed.discover, stay connected and stay informed.
We see tremendous growth opportunities inWe see tremendous growth opportunities in
mobile in the years ahead.mobile in the years ahead.
User engagement in all of these key propertiesUser engagement in all of these key properties
reflects how committed we are to deliveringreflects how committed we are to delivering
great experiences. In fact, I believe this is onegreat experiences. In fact, I believe this is one
of the major reasons Yahoo!’s brand remainsof the major reasons Yahoo!’s brand remains
so strong despite the challenges the Companyso strong despite the challenges the Company
has faced. Yes, there is much more we can andhas faced. Yes, there is much more we can and
will do to add more “wow” to our products,will do to add more “wow” to our products,
but it’s important to remember how muchbut it’s important to remember how much
our users already love what Yahoo! bringsour users already love what Yahoo! brings
them today.them today.
Becoming More Valuable to AdvertisersBecoming More Valuable to Advertisers
and Publishers:and Publishers: The common theme in my The common theme in my
conversations with major advertisers andconversations with major advertisers and
agencies since my arrival is that they viewagencies since my arrival is that they view
Yahoo! as a leader in online advertising. TheyYahoo! as a leader in online advertising. They
highly value our creativity and technical exper-highly value our creativity and technical exper-
tise in bringing real solutions to their market-tise in bringing real solutions to their market-
ing challenges. What they want most, though,ing challenges. What they want most, though,
is an easier way to buy and measure onlineis an easier way to buy and measure online
advertising—especially display advertising.advertising—especially display advertising.
To that end, in 2008 we introduced APTTo that end, in 2008 we introduced APT
from Yahoo!, a display advertising platformfrom Yahoo!, a display advertising platform
designed to simplify the process of buyingdesigned to simplify the process of buying
and selling online ads. APT from Yahoo! isand selling online ads. APT from Yahoo! is
an integrated web-based solution designedan integrated web-based solution designed
to bring publishers, advertisers, networksto bring publishers, advertisers, networks
and agencies together, and ultimately allowand agencies together, and ultimately allow
advertisers to better target audiences notadvertisers to better target audiences not
just on Yahoo! but across the Web and allowjust on Yahoo! but across the Web and allow
publishers to better monetize their content.publishers to better monetize their content.
More than 130 of our newspaper partnersMore than 130 of our newspaper partners
are up and running on the platform, and we’llare up and running on the platform, and we’ll
continue to roll out APT from Yahoo! over thecontinue to roll out APT from Yahoo! over the
coming year.coming year.
On the search side, Yahoo!’s Panama searchOn the search side, Yahoo!’s Panama search
marketing system has been deployed globally,marketing system has been deployed globally,
and in 2008 we enhanced our geo-targetingand in 2008 we enhanced our geo-targeting
capabilities in the U.S. and introduced acapabilities in the U.S. and introduced a
number of features to improve monetization.number of features to improve monetization.
The overarching goal of Panama is to increaseThe overarching goal of Panama is to increase
the relevance of search advertisements tothe relevance of search advertisements to
users, and our progress there helped ususers, and our progress there helped us
continue to grow revenue per search incontinue to grow revenue per search in
the U.S. throughout 2008.the U.S. throughout 2008.
With advertisers cutting budgets and seekingWith advertisers cutting budgets and seeking
greater efficiency and measurability in thisgreater efficiency and measurability in this
tough climate, we must do even more totough climate, we must do even more to