An Assignment of E-Commerce on the topic of Yahoo.

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Submitted To, Prof. P. Ram Manoranjan

Prepared By, Nashima Khatun Roll NO- 10048 PGDM 2nd Yr.

Department of Management

INSTITUTE OF MANAGEMENT EDUCATION SAHIBABAD

Yahoo! Search Marketing is a keyword-based "Pay per click" or "Sponsored search" Internet advertising service provided by Yahoo!. Yahoo began offering this service after acquiring Overture Services, Inc. (formerly GoTo.com). GoTo.com was an Idea lab spin off and was the first company to successfully provide a pay-for-placement search service following previous attempts that were not well received.

Origins of GoTo.com GoTo.com was an Idea lab spin off and was the first company to successfully provide a pay-for-placement search service. In February 1998, GoTo offered advertisers the option of bidding on how much they would be willing to pay to appear at the top of results in response to specific searches. The bid amount was paid by the advertiser to GoTo every time a searcher clicked on a link to the advertiser's website. By July 1998, advertisers were paying anything up to a dollar per click. GoTo's business model was based on the idea that its paid listings would make it more relevant than other services, especially for general searches, and web sites that pay more are probably better sites. A similar service had been offered by Open Text in 1996, but this precipitated outcries and bad publicity because searchers at the time did not want the search process more commercialized. In contrast, GoTo's pay-for-placement model was very successful. Commentors theorised that the web had matured in the intervening two years, and these type of economic models were more acceptable since the web was no longer just a place for academic research, but also a place for buying products. GoTo founder Bill Gross (entrepreneur) speculated at the launch that GoTo would succeed because, as a relatively new service, it had no reputation to taint with paid listings, unlike Open Text. On October 8, 2001, GoTo.com, Inc. renamed itself Overture Services, Inc. GoTo's chief operating officer Jaynie Studenmund said "We also felt it was a sophisticated enough name, in case our products expand." Through partnerships, Overture enabled portals such as MSN and Yahoo! to monetize the hundreds of millions of web searches made each day on their sites. Indeed, these partnerships proved highly lucrative, and in a period otherwise marked by dot-com failures, Overture became a substantial profit driver for portals like Yahoo! This success enabled Overture to acquire web sites such as AltaVista and All the Web Details of current service GoTo.com's and Overture's original services provided only a list of search results ordered according to the bid amounts paid by the respective advertisers. Yahoo!'s Search Marketing's latest iteration, code named Panama, was released early in 2007. It replaced the old formula with one more similar to what Google AdWords [citation needed] uses to rank advertisements against search results. The exact formula is secret, but it is basically Bid * Quality Score = Ad Rank, where quality score is based on the ad's CTR (click-through-rate), the relevance of the ad to the creative (known as "Quality Index"), and the 'quality' of the landing page the ad is sending the user to.[7]

Yahoo! Search Marketing also provides features such as Geotargeting, Ad Testing, Campaign Budgeting, and Campaign scheduling.[8] It also supports a RIA application which allows larger customers to manage their Yahoo! Search Marketing campaigns from the desktop. Details of current service GoTo.com's and Overture's original services provided only a list of search results ordered according to the bid amounts paid by the respective advertisers. Yahoo!'s Search Marketing's latest iteration, code named Panama, was released early in 2007. It replaced the old formula with one more similar to what Google AdWords [citation needed] uses to rank advertisements against search results. The exact formula is secret, but it is basically Bid * Quality Score = Ad Rank, where quality score is based on the ad's CTR (click-through-rate), the relevance of the ad to the creative (known as "Quality Index"), and the 'quality' of the landing page the ad is sending the user to.[7] Yahoo! Search Marketing also provides features such as Geotargeting, Ad Testing, Campaign Budgeting, and Campaign scheduling.[8] It also supports a RIA application which allows larger customers to manage their Yahoo! Search Marketing campaigns from the desktop. SWOT Analysis

Strengths Yahoo has the maximum number of users and most of revenue is generated through ads in yahoo mail Due to its large mail subscriber base, yahoo is considered to be the powerful marketing company Yahoo is known for its web portal, search engine, yahoo finance, yahoo answers, yahoo mail, yahoo directory etc Its product portfolio includes yahoo messenger, yahoo mail, yahoo personals, yahoo 360, Delicious, Fickr, Yahoo Buzz, yahoo Mobile, yahoo shopping, yahoo real estate, yahoo next, yahoo boss, yahoo meme, Y! connect Etc Weakness As per Jan 2012 data, a survey says yahoos market share in search engine is only 6% Google already has 83% market share and the immediate competitors are Baidu which has same 6% and bing has 4% in search engine Yahoo is losing its market share in mailing services very gradually due to Googles strong presence in search engine market and it related product portfolio complementing to search engine services Mail services, news, shopping, financial data and business directory services are provided by many others like MSN, CNN, e-bay, Money control etc.

Financial health of the company is not so promising for the investors. The companys assets both in terms of intangible and tangible are on the declining side. Google being the leading the service provider on the internet , is grabbing the revenues from advertisements Most of the services provided by Yahoo are unknown in the internet space Opportunities Yahoo Directory is the most structured and authenticated business directory, any customized development to its user in this will lead to flow of new revenue to the company The number of mobile users is constantly increasing in developing nations. Development of Yahoo! Mobile wap services will improve the market share Advertising in social media and internet has become essential element for every commodity Yahoo has huge potential in combining its services with social media platforms like Flickr etc It can focus on diversification of related business segments in Internet space Threats The biggest threat for any global service provider on the internet is increasing competitions in the local market especially China Another major threat is addressing of the cultural issues while going to foreign market Yahoos presence in the search engine services is declining very rapidly because of Googles strong presence The number of competitors is increasing of new innovations in the internet space by young entrepreneurs The advertising market which was once dominated by yahoo is being slowly grabbed by the social networking sites like Facebook, Myspace etc
YAHOO'S PROPRIETARY RIGHTS You acknowledge and agree that the Services and any necessary software used in connection with the Services ("Software ") contain proprietary and confidential information that is protected by applicable intellectual property and other laws. You further acknowledge and agree that Content contained in sponsor advertisements or information presented to you through the Services or advertisers is protected by copyrights, trademarks, service marks, patents or other proprietary rights and laws. Except as expressly authorised by Yahoo! or advertisers, you agree not to modify, rent, lease, loan, sell, distribute or create derivative works based on the Services or the Software, in whole or in part. Yahoo! grants you a personal, non-transferable and non-exclusive right and licence to use the object code of its Software on a single computer; provided that you do not (and do not allow any third party to) copy, modify, create a derivative work of, reverse engineer, reverse assemble or otherwise attempt to discover any source code, sell, assign, sublicence, grant a security interest in or otherwise transfer any right in the Software. The

foregoing is subject to applicable statute and other express law. You agree not to modify the Software in any manner or form, or to use modified versions of the Software, including (without limitation) for the purpose of obtaining unauthorised access to the Services. You agree not to access the Service by any means other than through the interface that is provided by Yahoo! for use in accessing the Services.