Yahoo 2010 Annual Report Download - page 38

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To assist us in evaluating display advertising and search advertising, beginning in the fourth quarter of 2010 we
began reporting the number of Web pages viewed by users (“Page Views”) separately for display and search.
“Search Page Views” is defined as the number of Web pages viewed by users on Yahoo! Properties and Affiliate
sites resulting from search queries and “revenue per Search Page View” is defined as search revenue divided by
our Search Page Views. “Display Page Views” is defined as the total number of Page Views on Yahoo!
Properties less the number of Search Page Views on Yahoo! Properties, and “revenue per Display Page View” is
defined as display revenue divided by our Display Page Views. While we also receive display revenue for
content match links (advertising in the form of contextually relevant links to advertisers’ Websites) on Yahoo!
Properties and Affiliate sites and for display advertising on Affiliate sites, we do not include that revenue or
those Page Views in our discussion or calculation of Display Page Views or revenue per Display Page View
because the net revenue and related volume metrics associated with them are not currently material to display
revenue.
We periodically review and refine our methodology for monitoring, gathering, and counting Page Views on
Yahoo! Properties. Based on this process, from time to time, we update our methodology to exclude from the
count of Page Views interactions with our servers that we determine or believe are not the result of user visits to
Yahoo! Properties.
Display Revenue. Display revenue for the year ended December 31, 2010 increased by 15 percent, compared to
2009. Increased advertising spending in display and a shift towards higher-yielding display inventory have
resulted in increased display revenue. Display revenue for the year ended December 31, 2009 decreased by
9 percent, compared to 2008. Although increased user activity levels on Yahoo! Properties contributed to a
higher volume of Display Page Views during 2009, lower advertising spending due to the economic environment
during the majority of 2009 resulted in decreased display revenue compared to 2008. During 2009, the effects of
foreign currency exchange rate fluctuations also contributed to the decline in display revenue, compared to 2008.
For the year ended December 31, 2010, Display Page Views decreased 2 percent and revenue per Display Page
View increased 20 percent, compared to 2009 due to the increase in revenue as discussed above. For the year
ended December 31, 2009, Display Page Views increased 4 percent and revenue per Display Page View
decreased 12 percent, compared to 2008. The decline in revenue per Display Page View in 2009 compared to
2008 was due to the decline in display revenue as discussed above.
We currently expect display revenue to increase for the first quarter of 2011, compared to the first quarter of
2010, as we continue to grow our display advertising business.
Search Revenue. Search revenue for the year ended December 31, 2010 decreased by 7 percent, compared to
2009. Search advertising revenue decreased primarily due to the required change in revenue presentation in the
fourth quarter of 2010 to reflect the revenue share with Microsoft for transitioned markets and the impact of
discontinuing our paid inclusion search product in the fourth quarter of 2009 as part of our advertising quality
initiatives. The decreases were offset, in part, by the impact of foreign exchange fluctuations in the Asia Pacific
segment and a new Affiliate in the Asia Pacific segment added in the fourth quarter of 2009.
Search revenue for the year ended December 31, 2009 decreased by 10 percent, compared to 2008. Although
increased traffic contributed to a higher volume of search queries on both Yahoo! Properties and Affiliate sites
during 2009, lower advertising spending due to the economic environment during the majority of 2009 and a
shift towards lower yielding inventory and non-commercial search terms resulted in decreased search revenue.
For the year ended December 31, 2010, Search Page Views decreased 1 percent and revenue per Search Page
View decreased 6 percent, compared to 2009. The decline in revenue per Search Page View in 2010 compared to
2009 was due to the decline in search revenue as discussed above. For the year ended December 31, 2009, Search
Page Views increased 23 percent and revenue per Search Page View decreased 26 percent, compared to 2008.
The decline in revenue per Search Page View in 2009 compared to 2008 was due to the decline in search revenue
as discussed above.
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