1. Global Web Trends
Yahoo! Inc.
July 16th, 2009
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2. 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.
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3. 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)
(UK)
(Germany)
(US) (France) (Korea)
(China)
(en Espanol) (Spain) (Italy) (India) (Japan)
(Vietnam)
(Taiwan)
(Mexico)
(Thailand) (Philippines)
(Hong Kong)
(Brazil) (Malaysia)
(Indonesia)
(Singapore)
(Argentina)
(Australia)
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4. “If you don't like change, you're going to like
irrelevance even less” –Eric Shinseki
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5. Planetary Trend #1: Global Online
Audience/Growth
Millions of Internet Users Worldwide
1,500
1,421
1,328
1,229
1,135
1,038
Source: 5 (August 2005) and US Census
Bureau, International Data Base
2005 2006 2007 2008 2009 2010
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Source (left chart): eMarketer, May 2007

6. Stock Market vs Global Internet Audience
NASDQ March 10, 2000 - 5,048.62
1500
1.4 Billion +
Internet Users
1000
750
500
250
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7. Massive Online Audience in
Asia
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8. Planetary Trend #2: BB Penetration
25% Global Internet Usage
% Weekly Media Consumption
20%
China
15%
South Korea Japan
US Canada
10%
Brazil Mexico France Germany
UK
Russia
5%
India
0%
0% 20% 40% 60% 80% 100%
% Internet Users Broadband
Ipsos “The Face of the Web” 2005 &
Population Reference Bureau 2006 data CONFIDENTIAL YAHOO! Do not distribute 8
Size of circle represents total audience

9. Major Shift In Media Consumption
Media Expected Growth Rates from 2005 to 2009 (U.S.)
15%
10%
10%
5%
1%
Newspapers Magazines 0% 0%
0%
Broadcast Box Office Cable/Satellite Internet
-3%
-5%
-10%
-10%
-15%
Source: Veronis Suhler Stevenson Communications Industry Forecast (2006)
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11. Yahoo! Selling Strategy focuses on:
• Broad reach to quality audiences
• Unmatched consumer insights
• Increased relevance and engagement
• Partnership for results
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12. Overview of Advertising
Products and Platforms
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13. Two Types of Registration Paths
Branded Campaigns DR or Performance
Call to action takes place Clear and defined call to
offline action
Brand exposure Easy registration path
Should be CPM deal Can test metrics to optimize
performance
Lead generation
ROI Focused, should be
performance deal (CPC or
CPA)
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14. CPT vs. CPM vs. CPC vs. CPA
CPT (cost-per-time):
CPT • Payment for placement by time (1 day,
Publisher week, month)
Preference
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)
Advertiser • Payment also dependent on effectiveness of
Preference advertiser experience to get user to
complete action
CPA • Advertiser must be able trace action to initial
ad to correctly attribute payment
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15. 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
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16. 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)
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17. 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.
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18. 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.
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19. KEY TAKEAWAY:
CPM is the next logical step in the evolution
of internet advertising growth
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