Yahoo 2011 Annual Report Download - page 8

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Yahoo! Messenger instant messaging service provides an interactive and personalized way for users to connect,
communicate and share experiences on a real-time basis. Yahoo! also offers mobile applications for Yahoo!
Messenger, including real-time video chat on mobile devices. Recently, a new feature was added on iPhone,
Android, Blackberry, and feature phones that enables Yahoo! Messenger users to chat directly with their
Facebook friends without leaving Yahoo! Messenger.
Yahoo! Groups provides members with shared access to information such as message archives, photo albums,
event calendars, and polls.
Yahoo! Answers is a service that allows users to ask and answer questions on a variety of topics on both PCs and
mobile devices.
Flickr is an online photo management and sharing service that makes it easy for users to upload, store, organize,
and share their photos. In addition to the basic service, Flickr offers a fee-based service with unlimited storage,
uploads, and an advertising-free browsing and sharing interface. Yahoo! offers mobile applications for Flickr, on
both iPhone and Android devices.
Connected TV enhances the TV viewing experience through an open, interactive platform. Yahoo! Connected TV
is available on top TV brands, including LG, Samsung, Sony, Toshiba and VIZIO.
We also have social properties tailored to users in specific international markets, which include blogging and
social networking Websites such as Wretch in Taiwan and Meme in Argentina, Brazil, Mexico, Taiwan,
Indonesia, India and the Philippines.
Search and Marketplaces
Our Search and Marketplaces offerings are designed to quickly answer users’ information needs by delivering
innovative and meaningful search, local, and listings experiences on the search results pages and across Yahoo!.
Search
Our Search offerings, including Yahoo! Search and Yahoo! Local, are available free to users and often serve as
the starting points from which our users navigate the Internet and discover content that matters to them.
Yahoo! Search provides users with a free search capability offering rich search results ranked and organized
based on relevance to each user’s search query. Sponsored search results are a subset of the overall search results
and provide links to paying advertisers’ Web pages.
On December 4, 2009, Yahoo! entered into a Search and Advertising Services and Sales Agreement (the “Search
Agreement”) and a License Agreement with Microsoft which provides for Microsoft to be the exclusive
algorithmic and paid search services provider on Yahoo! Properties and non-exclusive provider of such services
on Affiliate sites. Under the Search Agreement, Yahoo! will be the exclusive worldwide relationship sales force
for both companies’ premium search advertisers, which include advertisers meeting certain spending or other
criteria, advertising agencies that specialize in or offer search engine marketing services and their clients, and
resellers and their clients seeking assistance with their paid search accounts. Algorithmic and paid search
transitioned to the Microsoft platform in the U.S. and Canada in the fourth quarter of 2010. In 2011, we
completed the transition of algorithmic search in all remaining markets. The market-by-market transition of our
paid search platform to Microsoft’s platform and the migration of paid search advertisers and publishers to
Microsoft’s platform are expected to continue through the first half of 2013. See “Management’s Discussion and
Analysis of Financial Condition and Results of Operations—Search Agreement with Microsoft Corporation.”
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