Yahoo 2012 Annual Report Download - page 57

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from internal data. We periodically review and refine our methodologies for monitoring, gathering, and counting
Numbers of Ads Sold and Paid Clicks. Based on this process, from time to time we update such methodologies.
“Number of Ads Sold” is defined as the total number of ads displayed, or impressions, for paying advertisers on
Yahoo! Properties. “Price-per-Ad” is defined as display revenue from Yahoo! Properties divided by our Number
of Ads Sold. Our price and volume metrics for display are based on display revenue which we report on a gross
basis including TAC. Our price and volume metrics for display exclude both the Number of Ads Sold and the
related revenue for certain regions where we did not retain historical information in a manner that would support
period-to-period comparison on these metrics. The countries and regions included in our display metrics are: the
United States, the United Kingdom, France, Germany, Spain, Italy, Taiwan, Hong Kong, Southeast Asia, and
India.
“Paid Clicks” are defined as the total number of times an end-user clicks on a sponsored listing on Yahoo!
Properties and Affiliate sites for which an advertiser pays on a per click basis. “Price-per-Click” is defined as
search revenue divided by our Paid Clicks. Although Paid Clicks and Price-per-Click are predominantly search
metrics, we include Paid Clicks and the related revenue from certain display advertisements that are sold on a
price-per-click basis. The revenue associated with display Paid Clicks is not material and is excluded from our
display price volume metrics. Our price and volume metrics for search are based on gross search revenue in all
markets in which we operate, including TAC and any Microsoft RPS guarantee payments.
Display Revenue
Display revenue for the year ended December 31, 2012 decreased by 1 percent, compared to 2011. This decrease
can be attributed to a decline in display revenue on Yahoo! Properties in the EMEA region.
For the year ended December 31, 2012, Number of Ads Sold decreased 13 percent and Price-per-Ad increased 11
percent, compared to 2011. The decrease in Number of Ads Sold year-over-year was attributable to a decline in
Number of Ads Sold on Yahoo! Properties in the Americas and Asia Pacific regions. The increase in Price-per-
Ad was due to a change in the mix of our ads sold.
Display revenue for the year ended December 31, 2011 remained flat compared to 2010, due to growth in
guaranteed and non-guaranteed advertising in the EMEA and Asia Pacific regions and increases in non-
guaranteed advertising in the Americas region offset by declines in the Americas region in guaranteed
advertising.
For the year ended December 31, 2011, Number of Ads Sold was flat and Price-per-Ad increased 2 percent,
compared to 2010. The Number of Ads Sold remained flat year-over-year due to growth in the Number of Ads
Sold on Yahoo! Properties in the Asia Pacific and EMEA regions offset by a decline in the Americas region. The
Increase in Price-per-Ad was driven by guaranteed and non-guaranteed advertising in the EMEA region and by a
change in the mix of our ads sold in the Americas region.
Search Revenue
Search revenue for the year ended December 31, 2012 increased by 2 percent compared to 2011. Search revenue
increased due to increased search revenue in the Americas region which resulted from an increase in sponsored
searches on Yahoo! Properties, as well as higher revenue per search. The increase was partially offset by
decreased search revenue in the EMEA region and other markets due to the required change in revenue
presentation for transitioned markets from a gross to a net (after TAC) basis.
For the year ended December 31, 2012, Paid Clicks and Price-per-Click increased 7 percent and 1 percent,
respectively, compared to 2011. The increase in Paid Clicks was primarily attributable to the optimization of the
user interface. The increase in Price-per-Click was due to a change in the mix of Paid Clicks on our sponsored
listings.
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