Yahoo 2012 Annual Report Download - page 24

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Information regarding risks involving our international operations is included in Part I, Item 1A “Risk Factors”
of this Annual Report on Form 10-K and is incorporated herein by reference.
SALES
We maintain three primary channels for selling our advertising services: field, mid-market, and reseller/small
business. Our field advertising sales team sells display advertising in all markets and search advertising services
in non-transitioned markets to leading advertisers and agencies. Under the Search Agreement with Microsoft, our
field advertising team also sells search advertising to premium advertisers in transitioned markets. Our mid-
market channel sells our services to medium-sized businesses, while our reseller/small business channel enables
us to sell advertising services to additional regional and small business advertisers. In 2013, we reorganized our
U.S. sales force to provide one, customer-centric solution to our customers. We believe that this will allow us to
provide the best solutions across all of our products based on a deeper understanding of our customers’
businesses.
In the U.S., we employ sales professionals in multiple locations, including Atlanta, Boston, Chicago, Dallas,
Detroit, Hillsboro, Los Angeles, Miami, New York, Omaha, San Francisco, and Sunnyvale. In international
markets, we either have our own internal sales professionals or rely on our established sales agency relationships
in more than 50 countries, regions, and territories.
No individual customer represented more than 10 percent of our revenue in 2010, 2011, or 2012. Revenue under
the Search Agreement represented more than 10 percent of our revenue during 2011 and 2012.
Internet usage is subject to seasonal fluctuations, typically declining during customary summer vacation periods
and increasing during the fourth quarter holiday period due to higher online retail activity. These seasonal
patterns have affected, and we expect will continue to affect, our business and quarterly sequential revenue
growth rates.
MARKETING
Yahoo! is one of the most recognized brands in the world. Our products, services, and content enable us to
attract, retain, and engage users, advertisers, publishers, and developers. Our marketing teams engage in each
step of the development, deployment, and management of products and services, and in content design. Our
marketing team will help shape our offerings to better market them to our potential and existing users.
COMPETITION
We face significant competition from integrated online media companies, social networking sites, traditional
print and broadcast media, search engines, and various e-commerce sites. Our competitors include Google,
Facebook, Microsoft, and AOL. Several of our competitors offer an integrated variety of Internet products,
advertising services, technologies, online services and/or content that may compete for the attention of our users,
advertisers, developers, and publishers. We also compete with these companies to obtain agreements with third
parties to promote or distribute our services. In addition, we compete with social media and networking sites
which are attracting an increasing share of users, users’ online time and online advertising dollars.
We compete with advertising networks, exchanges, demand side platforms and other platforms, such as Google
AdSense, DoubleClick Ad Exchange, AOL’s Ad.com and Microsoft Media Network, as well as traditional media
companies for a share of advertisers’ marketing budgets and in the development of the tools and systems for
managing and optimizing advertising campaigns.
In a number of international markets, especially those in Asia, Europe, the Middle East and Latin America, we
face substantial competition from local Internet service providers and other portals that offer search,
communications, and other commercial services and often have a competitive advantage due to dominant market
share in their territories, greater local brand recognition, focus on a single market, familiarity with local tastes
and preferences, or greater regulatory and operational flexibility.
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