Description
project on global web trends of yahoo
Global Web Trends
Yahoo! Inc. July 16th, 2009
CONFIDENTIAL YAHOO! Do not distribute
1
To be your Home on the Internet. To be the “Must Buy” and “Partner of Choice” for the Top Advertisers and Agencies in the World.
CONFIDENTIAL YAHOO! Do not distribute 2
Yahoo! ???
Yahoo! reaches 500 million users everyday in 38 markets and 30 languages
• #1 Start Page in the world : http://yahoo.com • #1 in Personalization: more online users personalize their Start Page with Yahoo! than with any other portal
(Canada) (US) (en Espanol)
(UK) (France) (Spain) (Germany) (China) (Italy) (India) (Vietnam) (Taiwan) (Thailand) (Hong Kong) (Brazil) (Malaysia) (Singapore) (Argentina) (Australia) (Philippines) (Japan) (Korea)
(Mexico)
(Indonesia)
CONFIDENTIAL YAHOO! Do not distribute
3
“If you don't like change, you're going to like irrelevance even less” –Eric Shinseki
CONFIDENTIAL YAHOO! Do not distribute
4
Planetary Trend #1: Global Online Audience/Growth
Millions of Internet Users Worldwide
1,500 1,421 1,328 1,229 1,135 1,038
2005
2006
2007
2008
2009
2010
Source: 5 (August 2005) and US Census Bureau, International Data Base 5
Source (left chart): eMarketer, May 2007
CONFIDENTIAL YAHOO! Do not distribute
Stock Market vs Global Internet Audience
NASDQ March 10, 2000 - 5,048.62
1500
1.4 Billion + Internet Users
1000
750
500
250
CONFIDENTIAL YAHOO! Do not distribute
6
6
Massive Online Audience in Asia
CONFIDENTIAL YAHOO! Do not distribute
7
7
Planetary Trend #2: BB Penetration
25%
Global Internet Usage
% Weekly Media Consumption
20%
China
15%
South Korea Japan Canada France Germany
US
10%
Brazil UK Mexico
5%
Russia
India
0% 0% 20% 40% 60% 80% 100%
% Internet Users Broadband
Ipsos “The Face of the Web” 2005 & Population Reference Bureau 2006 data Size of circle represents total audience
CONFIDENTIAL YAHOO! Do not distribute
8
Major Shift In Media Consumption
Media Expected Growth Rates from 2005 to 2009 (U.S.)
15% 10% 5%
Newspapers Magazines
10%
0% -5% -10% -15%
-3%
0%
0%
1%
Broadcast
Box Office
Cable/Satellite
Internet
-10%
Source: Veronis Suhler Stevenson Communications Industry Forecast (2006)
CONFIDENTIAL YAHOO! Do not distribute
9
9
CONFIDENTIAL YAHOO! Do not distribute
10
10
Yahoo! Selling Strategy focuses on:
• Broad reach to quality audiences • Unmatched consumer insights • Increased relevance and engagement • Partnership for results
CONFIDENTIAL YAHOO! Do not distribute
11
Overview of Advertising Products and Platforms
CONFIDENTIAL YAHOO! Do not distribute
12
Two Types of Registration Paths
Branded Campaigns
Call to action takes place offline Brand exposure Should be CPM deal
DR or Performance
Clear and defined call to action Easy registration path Can test metrics to optimize performance Lead generation ROI Focused, should be performance deal (CPC or CPA)
13
CONFIDENTIAL YAHOO! Do not distribute
CPT vs. CPM vs. CPC vs. CPA
Publisher Preference CPT
CPT (cost-per-time):
• Payment for placement by time (1 day, week, month)
CPM (cost per 1000 impressions):
• Payment for each impression served by publisher
CPM
CPC (cost-per-click):
• Payment based on user clicking ad, several impressions required to get 1 click • Click dependent on appeal of specific ad presented to a given user • Algorithm to match ad “library” to user and inventory characteristics
CPC
CPA (cost-per-action):
• Click required on ad (same factors as per CPC) • Payment also dependent on effectiveness of advertiser experience to get user to complete action • Advertiser must be able trace action to initial ad to correctly attribute payment
14
Advertiser Preference CPA
CONFIDENTIAL YAHOO! Do not distribute
Advertising Products
•CPM Guaranteed placement (class 1)
• Placement is priority: context, audience, ad spot, views per time period/user etc. can be defined by advertiser • Metrics: Share of voice, impressions, ad placement and audience characteristics
•CPM Non-Guaranteed placement (class 2)
• Run of Network: Specific placement not critical - vertical, context and # of views may not be specified by advertiser • Metrics: Actual impressions delivered for invoicing
•CPC/CPA: Performance pay per action
• Billing not based on number of impressions served • Payment occurs when user clicks on ad or action is taken – Revenue maximized when publisher learns optimal placement to maximize click-through-rate (context, geo and audience) for a given advertiser creative
CONFIDENTIAL YAHOO! Do not distribute
15
The Performance Buying Challenge
Direct response advertisers have traditionally relied on performance-based or affiliate networks as a primary online acquisition channel. > Limits the risk of a campaign failing by paying only for customer leads or acquisitions > Provides access to an aggregate population of publishers > Minimizes workflow The model has limitations: control, visibility into true acquisition costs, and optimization ( ensuring value > cost)
16
Qualifying advertisers for CPL/CPA
Key criteria for qualifying advertisers:
>Budget minimum: > $25K USD per month >Detailed understanding of current campaign performance metrics >Current purchaser of Y! Non-Guaranteed inventory >Extensive creative / offer catalog >“Action” pixel <4 pages deep, high user engagement, and clear calls to action en-route.
CONFIDENTIAL YAHOO! Do not distribute
17
CPL/A - How does it work?
> Phase 1: Learn your metrics (if necessary) Advertiser invests to understand metrics and best placements on Y! > Phase 2: Launch performance campaign Advertiser launches performance campaign utilizing invested learning. > Phase 3: Optimize your performance campaign Y! Account Executive works with advertiser to optimize around key metrics.
18
KEY TAKEAWAY: CPM is the next logical step in the evolution of internet advertising growth
CONFIDENTIAL YAHOO! Do not distribute
19
CONFIDENTIAL YAHOO! Do not distribute
20
doc_808194118.pdf
project on global web trends of yahoo
Global Web Trends
Yahoo! Inc. July 16th, 2009
CONFIDENTIAL YAHOO! Do not distribute
1
To be your Home on the Internet. To be the “Must Buy” and “Partner of Choice” for the Top Advertisers and Agencies in the World.
CONFIDENTIAL YAHOO! Do not distribute 2
Yahoo! ???
Yahoo! reaches 500 million users everyday in 38 markets and 30 languages
• #1 Start Page in the world : http://yahoo.com • #1 in Personalization: more online users personalize their Start Page with Yahoo! than with any other portal
(Canada) (US) (en Espanol)
(UK) (France) (Spain) (Germany) (China) (Italy) (India) (Vietnam) (Taiwan) (Thailand) (Hong Kong) (Brazil) (Malaysia) (Singapore) (Argentina) (Australia) (Philippines) (Japan) (Korea)
(Mexico)
(Indonesia)
CONFIDENTIAL YAHOO! Do not distribute
3
“If you don't like change, you're going to like irrelevance even less” –Eric Shinseki
CONFIDENTIAL YAHOO! Do not distribute
4
Planetary Trend #1: Global Online Audience/Growth
Millions of Internet Users Worldwide
1,500 1,421 1,328 1,229 1,135 1,038
2005
2006
2007
2008
2009
2010
Source: 5 (August 2005) and US Census Bureau, International Data Base 5
Source (left chart): eMarketer, May 2007
CONFIDENTIAL YAHOO! Do not distribute
Stock Market vs Global Internet Audience
NASDQ March 10, 2000 - 5,048.62
1500
1.4 Billion + Internet Users
1000
750
500
250
CONFIDENTIAL YAHOO! Do not distribute
6
6
Massive Online Audience in Asia
CONFIDENTIAL YAHOO! Do not distribute
7
7
Planetary Trend #2: BB Penetration
25%
Global Internet Usage
% Weekly Media Consumption
20%
China
15%
South Korea Japan Canada France Germany
US
10%
Brazil UK Mexico
5%
Russia
India
0% 0% 20% 40% 60% 80% 100%
% Internet Users Broadband
Ipsos “The Face of the Web” 2005 & Population Reference Bureau 2006 data Size of circle represents total audience
CONFIDENTIAL YAHOO! Do not distribute
8
Major Shift In Media Consumption
Media Expected Growth Rates from 2005 to 2009 (U.S.)
15% 10% 5%
Newspapers Magazines
10%
0% -5% -10% -15%
-3%
0%
0%
1%
Broadcast
Box Office
Cable/Satellite
Internet
-10%
Source: Veronis Suhler Stevenson Communications Industry Forecast (2006)
CONFIDENTIAL YAHOO! Do not distribute
9
9
CONFIDENTIAL YAHOO! Do not distribute
10
10
Yahoo! Selling Strategy focuses on:
• Broad reach to quality audiences • Unmatched consumer insights • Increased relevance and engagement • Partnership for results
CONFIDENTIAL YAHOO! Do not distribute
11
Overview of Advertising Products and Platforms
CONFIDENTIAL YAHOO! Do not distribute
12
Two Types of Registration Paths
Branded Campaigns
Call to action takes place offline Brand exposure Should be CPM deal
DR or Performance
Clear and defined call to action Easy registration path Can test metrics to optimize performance Lead generation ROI Focused, should be performance deal (CPC or CPA)
13
CONFIDENTIAL YAHOO! Do not distribute
CPT vs. CPM vs. CPC vs. CPA
Publisher Preference CPT
CPT (cost-per-time):
• Payment for placement by time (1 day, week, month)
CPM (cost per 1000 impressions):
• Payment for each impression served by publisher
CPM
CPC (cost-per-click):
• Payment based on user clicking ad, several impressions required to get 1 click • Click dependent on appeal of specific ad presented to a given user • Algorithm to match ad “library” to user and inventory characteristics
CPC
CPA (cost-per-action):
• Click required on ad (same factors as per CPC) • Payment also dependent on effectiveness of advertiser experience to get user to complete action • Advertiser must be able trace action to initial ad to correctly attribute payment
14
Advertiser Preference CPA
CONFIDENTIAL YAHOO! Do not distribute
Advertising Products
•CPM Guaranteed placement (class 1)
• Placement is priority: context, audience, ad spot, views per time period/user etc. can be defined by advertiser • Metrics: Share of voice, impressions, ad placement and audience characteristics
•CPM Non-Guaranteed placement (class 2)
• Run of Network: Specific placement not critical - vertical, context and # of views may not be specified by advertiser • Metrics: Actual impressions delivered for invoicing
•CPC/CPA: Performance pay per action
• Billing not based on number of impressions served • Payment occurs when user clicks on ad or action is taken – Revenue maximized when publisher learns optimal placement to maximize click-through-rate (context, geo and audience) for a given advertiser creative
CONFIDENTIAL YAHOO! Do not distribute
15
The Performance Buying Challenge
Direct response advertisers have traditionally relied on performance-based or affiliate networks as a primary online acquisition channel. > Limits the risk of a campaign failing by paying only for customer leads or acquisitions > Provides access to an aggregate population of publishers > Minimizes workflow The model has limitations: control, visibility into true acquisition costs, and optimization ( ensuring value > cost)
16
Qualifying advertisers for CPL/CPA
Key criteria for qualifying advertisers:
>Budget minimum: > $25K USD per month >Detailed understanding of current campaign performance metrics >Current purchaser of Y! Non-Guaranteed inventory >Extensive creative / offer catalog >“Action” pixel <4 pages deep, high user engagement, and clear calls to action en-route.
CONFIDENTIAL YAHOO! Do not distribute
17
CPL/A - How does it work?
> Phase 1: Learn your metrics (if necessary) Advertiser invests to understand metrics and best placements on Y! > Phase 2: Launch performance campaign Advertiser launches performance campaign utilizing invested learning. > Phase 3: Optimize your performance campaign Y! Account Executive works with advertiser to optimize around key metrics.
18
KEY TAKEAWAY: CPM is the next logical step in the evolution of internet advertising growth
CONFIDENTIAL YAHOO! Do not distribute
19
CONFIDENTIAL YAHOO! Do not distribute
20
doc_808194118.pdf