Yahoo 2013 Annual Report Download - page 13

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In the U.S., we employ sales professionals in multiple locations, including Atlanta, Boston, Burbank, 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 2011, 2012, or 2013. Revenue under
the Search Agreement represented approximately 20 percent, 25 percent, and 31 percent of our revenue for the
years ended December 31, 2011, 2012 and, 2013, respectively.
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, and publishers. 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 online media companies, social media and 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 in a manner similar to us that compete for the
attention of our users, advertisers, 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.
Yahoo’s competitive advantage centers on the fact that we make people’s daily digital habits more entertaining—
this includes daily activities like communicating, searching, reading and sharing information. We believe our
principal competitive strengths include the usefulness, accessibility, integration, and personalization of the online
services that we offer; the quality, personalization, and presentation of our search results; and the overall user
experience on our leading premium content properties and other Yahoo Properties. Our principal competitive
strengths relating to attracting advertisers and publishers are the reach, effectiveness, and efficiency of our
marketing services as well as the creativity of the marketing solutions that we offer. “Reach” is the size of the
audience and/or demographic that can be accessed through the Yahoo Network. “Effectiveness” for advertisers is
the achievement of marketing objectives, which we support by developing campaigns, measuring the
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