Yahoo 2012 Annual Report Download - page 58

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Search revenue for the year ended December 31, 2011 decreased by 41 percent, compared to 2010. Search
revenue decreased primarily due to the required change in revenue presentation for transitioned markets from a
gross to a net (after TAC) basis, which began in the fourth quarter of 2010, the associated revenue share with
Microsoft for the U.S. and Canada, and the loss of an Affiliate in the Asia Pacific region.
For the year ended December 31, 2011, Paid Clicks decreased 25 percent and Price-per-Click increased 6
percent, compared to 2010. The decrease in Paid Clicks and increase in Price-per-Click was primarily
attributable to the transition to Microsoft’s platform due to differences in the ad serving platform.
Other Revenue
Other revenue for the year ended December 31, 2012 decreased by 1 percent, compared to 2011. There was a
decrease in fees revenue from certain of our broadband access partnerships and a decline in listings revenue in
the Americas region. This decrease was partially offset by an increase in the Americas region due to new and
amended partner deals, as well as an increase in royalty revenue resulting from the amended TIPLA agreement.
Other revenue for the year ended December 31, 2011 decreased by 4 percent, compared to 2010. The decrease
was attributable to changes in certain of our broadband access partnerships, our shift from a fee-paying user
structure to other fee structures, and to the divestiture of certain business lines during the year ended
December 31, 2010. In addition, revenue from other premium services declined year-over-year as we continue to
outsource various offerings to commercial partners.
Revenue ex-TAC by segment
Americas
Americas revenue ex-TAC for the year ended December 31, 2012 increased $136 million, or 4 percent, compared
to 2011. Our year-over-year increase in Americas revenue ex-TAC was primarily attributable to increased search
revenue ex-TAC from increases in sponsored search on Yahoo! Properties, which was partially offset by a
decline in display revenue ex-TAC.
Americas revenue ex-TAC for the year ended December 31, 2011 decreased $325 million, or 9 percent,
compared to 2010. Search revenue ex-TAC decreased year-over-year due to the revenue share with Microsoft
associated with the Search Agreement as well as declines in our Affiliate search revenue as a result of the
Microsoft transition. Display revenue ex-TAC decreased year-over-year due to declines in guaranteed
advertising. Other revenue decreased year-over-year due to changes in certain of our broadband access
partnerships, a shift from a fee-paying user structure to other fee structures, and the divestiture of certain business
lines during the year ended December 31, 2010.
Revenue ex-TAC in the Americas accounted for approximately 73 percent of total revenue ex-TAC for the year
ended December 31, 2012, compared to 72 percent and 76 percent in 2011 and 2010, respectively.
EMEA
EMEA revenue ex-TAC for the year ended December 31, 2012 decreased $50 million, or 12 percent, compared
to 2011. The year-over-year declines in EMEA revenue ex-TAC were primarily related to decreased search and
display revenue ex-TAC. Search revenue ex-TAC declined due to the revenue share with Microsoft associated
with the Search Agreement. Display revenue ex-TAC on Yahoo! Properties also declined due to a decrease in
guaranteed advertising related to a decline in supply which was partially offset by increased pricing.
EMEA revenue ex-TAC for the year ended December 31, 2011 increased $39 million, or 10 percent, compared to
2010. Our year-over-year increase in revenue ex-TAC was primarily driven by increases in our display
advertising business and the favorable effects of foreign currency exchange rate fluctuations.
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