Building InnovationMARKETING STUDY: YAHOO’S RECONQUERING THE INTERNET

Team 1: Chenhui James Zheng, Chaoyu Li, Maria Hsu Thiri New, Alona Timofeyeva, Nina Maluenda & Anna Ketsetzioglou

History Marketing Briefing Challenges Yahoo! is Facing Yahoo! & Content Based WebsiteTarget AudienceThe Strategy

Agenda

Background“ I definitely think what drives technology companies is the people, because in a technology company, it’s always about what are you going to do next?” – Marissa Mayer, CEO of Yahoo!

1994 – Founder’s of Yahoo!

create Jerry & David’s Guide to

the WWW

1996- Yahoo!

goes public

1997 VIP! My Mom and I get Yahoo! Email!

2001- Reached it’s low of $8.11 per

share

2004I moved to

GMAIL, mom stays with Yahoo!

2008- Refusal to Merge with Microsoft

2012- largest layoff in Yahoo! history- 14%

2012- Marisa

Mayer is named

CEO

2013 – Acquire Tumblr

2013- Hire 17 yr. old to develop

Mobile APP Technology used

to summarize media

Yahoo!’s Timeline

Pieces At Work:

Mobile Innovation at your Fingertips: MaVeNs

(Mobile, Video, Native, Social)

Apps

Content Rich

Live Video Steam

Mobile: quickly responding to impulses, emotions; as the mind.

Challenging Times for

Yahoo!

Unclear Brand Image

Q: Please type in the first three words that come to your mind when you think of Yahoo?

Brand Perception

Yahoo! Users & The Brand

29% and 30% Perceive the brand a Friend or an Acquaintance

45% feel there has been no change throughout the Year

46% Do not Care about the Brand’s Existence

Q37, Q39, 40

Yahoo!’s Revenue is

mainly made up

of …

40%

40%

20%

RevenueSearch Display AdAll other Revenue

2012 : - $3,95 Billion in Total - $4.3

Billion derived from Alibaba Stock

2014: - $7.52 Billion in Total - $6.77Billion in derived from Alibab Stock

Poor Net Income Performance

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 20140

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

Net Income 2004 - 2014, Google Vs. Yahoo

GoogleYahoo

Year

US D

olla

rs in

Mill

ions

Drop in Search Engine Market Share

Drop in Yahoo!’s Display Advertising Share

In SummaryYahoo! is Facing

…

Drop in Market Share

Poor Performance in Revenue

Unclear Brand Image

Break Down of Yahoo! Inc.

Yahoo! Inc. Yahoo! Search Engine

Yahoo! Mail Yahoo! Content

Search Engine Market

Size: $2 Billion Yearly Increase in Ad Spend

Main Players: Google, Bing & Yahoo! Devices: Smartphone & Desktop

Computers.

59% of people believe - “When you go online, you’ll pretty much get the same search results regardless of which search engine you use”

88 % say - “Some search Engines are simply better than others.”

Search Engine Preferences

Google Bing Yahoo! MSN0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Search Engine Preference

Ever heard Past 3 months Most often

q16. Which of the following search engines have you ever seen or heard of? by BANNER1

Google’s Dominance Google

65% - is easy to use 59%- A lot of people use this site 52% - Is Very Practical

Bing 25% is easy to use 23% A lot bit boring 20% - I don’t understand why people use

this site Yahoo

36% - is easy to use 35%- A lot of people use this site 35% - Is great for general news

66%

14%

9%

11%

Q. 19: Which of the following Search En-gines would you say you use most often?

Google BingYahooOthers

Search Engines choice is

Habitual

86% say: “: I have a favorite search engine and that’s the one I usually use”

81% say: “If I don’t like the default search engine on my computer, I’ll change it to something else

49%

23%

16%

6%6%

Q. 6r1: Choosing Search Engine to Use When Searching Online

I do this com-pletely as a matter of habit

I do this somewhat as a matter of habit

I put some thought into this

I put a lot of thought into this

I don't do this

“”

Endless War has been is Lost

THE WAR OF OUR AGES BETWEEN GOOGLE, YAHOO AND BING HAS BEEN LOST… NOW IT IS TIME TO MOVE FORWARD

Yahoo’s CEO say, “ What a relief, now we can move on to the good stuff!”

Yahoo! Inc. Yahoo! Search Engine

Yahoo! Mail Yahoo! Content

Yahoo Mail and Hotmail are the Main email providers

Consumers have a general satisfaction of 98%

Smartphones & Tablets higher consumption

Each individual had several email accounts

Email Market

1% 8%15%

18%25%

33%

Email Providers Preference

Apple iCloud/ Me MailAOL Mail None of theseGmailHotmailYahoo! Mail

Q. 13

Yahoo! Mail dominates the Total Market Yahoo! Mail, Hotmail & Gmail are the main player Gmail more common amongst 24-39 yr. olds Yahoo! Ad cuts with payable accounts 40 yrs., Hotmail as second provider 18-39 yrs. Gmail as 1st Choice Key Point: Integration, Easiness, Accessibility

Yahoo! Mail Market Dominance

Yahoo! Inc. Yahoo! Search Engine Yahoo! Mail

Yahoo! Content

Yahoo! ContentTHE OPPORTUNITY...

Content as a Segment is Attractive

29% Yahoo Content

Content as a Segment is Attractive

22 categories

Differentiation in awareness

Differentiation in genders

Male: Sports, Finance & Travel

Female: News, Messenger & Games

Content as a Segment is Attractive

YAHOO! Content’s Highest Awareness

Variation between preferences

Yahoo! News #1

Messenger and Sports are following

Content’s Competitive Market Set: Infinite Options

Content Preferences

● 45% visited Yahoo! News● 27% visited Yahoo! News in the past 3

months● 15% use Yahoo! News more often● 74% Total Satisfaction● Smartphone Use highest in the market

Yahoo News Dominance

Buzzfeed● Can be annoying 25%● Is great for entertainment

news 21%● Is more for young people 32%

Huffington Post ● Is great for news on finance

28%● Is easy to use 21%● Is more for older people 24%

Competition & Brand Awareness

…& THE SOLUTION

PROMOTE YAHOO! Inc. AS CONTENT EXPERTISE

Content & Digital Trends

More than 50% of population choose content source habitually

66% agree that takes more news online 80% of millennials 73% of College Degree owners 73% with income $49-70K

News Importance and Digital Content

Digital Content as a Habit

q6r3: Deciding where to get the latest news online

Switch & maintenance

EVERYTHING IN ONE PAGE

CONTENT GENERATOR AND AUTHENTICITY

EXPERTISE WITH VARIATION AND SEGMENTATION

EASY AND ACCESSIBLE APP

q7r9-->reliability, q8r5-->expertise

Key Content Points

• General Preference of Integration

• 18-39y higher integration

Integration

q7r3

q7r9, q8r3, q8r4

Reliability & Quality in Digital Content

q8r5

Expertise Importance

18-39y higher expertise preferences

78% total expertise preference

Digital Ad Spend is Ubiquitous with Mobile Ad Spend

2013 2014 2015 2016 2017

$33.40 $32.99 $32.01 $29.00 $26.68 $9.69 $17.73 $26.59 $37.49 $47.43 $43.08 $50.71 $58.60 $66.49 $74.11

US Digital Ad Spend by Channel, 2013 -2017 - in Billions

Desktop

Mobile

Combined Ad Spend

Target Audience

Yahoo!’s Target Market

18-39 years oldHeavy Content ConsumersSmartphones & TabletsCollege degree or above

q5.

Device Preferences

★ Smartphone, favorite device between 18-59 yrs.

★ Desktop ,1st place for 60+

★ Tablet, strong presence between 18-39y

Why we choose 18-39?

Ever Used

P3M

Most Often

0% 10% 20% 30% 40% 50% 60%

53%

23%

17%

43%

29%

15%

39%

28%

14%

News Site Usage By Age

60+ 40-59 18-39

q22. Which of the following websites, if any, have you ever visited to get news? by BANNER1

Yahoo users consumption highest on mobile and tablet!

Smartphone and Tablets users

YAHOO NEWS has HIGHEST % among any other new sites

Yahoo News is the most visited site that people would visit often to get news.

Yahoo News is doing great

compared to the other sites

Uses of desktop droppedNew York Times

BBC.comNone of these

Washington PostWall Street Journal

Buzzfeed.comNBCNews.comABCNews.com

ESPN.comUSA Today

MSNBC.comFoxNews.comCBSNews.comGoogle News

Huffington PostCNN.com

Yahoo! News

16%17%18%

19%19%

21%24%

24%25%

27%30%

31%31%32%

34%41%

45%

Websites Ever Visited

q22. Which of the following websites, if any, have you ever visited to get news?

College graduate has highest consumption of content

Students and College Graduate

★ High consumption on various content

★ Students- research, news★ Graduate Student - Thesis Research★ Working people- research , data,

finance, news★ Family- Yahoo Parenting★ Millennials boys- Yahoo Sport, Yahoo

Games, Yahoo Auto★ Millennials girls - Yahoo Shopping

-Older Adults - Yahoo Health★ Some younger adults- Yahoo

movies, Yahoo shopping, Yahoo Dating, Yahoo Travel

The Strategy

1. FUN2. PEER LEADER3. FRIEND4. TRUSTWORTHY

Yahoo!’s Current Personality: Foundation for our message

Q: Imagine for a moment that the sites below were actual “people” that you knew For each statement below, please indicate which of these “people” you feel that statement describes You can select none, one, some or all of the

Our Strategy: Yahoo is now a Mobile Content Provider

BRAND REPOSITIONING Reposition Yahoo! Inc. as a “Content Provider”

INCREASE CONSUMPTION OF CURRENT USERS Make people use all parts of yahoo; apps, live streaming,

weather etc.

MOBILE FIRST Promote new app for integration, portability & mobility.

WE DIVIDE, YOU CONQUER ...THE WORLD

“WE”: All sub-categories of Yahoo belongs to one Yahoo! Family

“WE” are a family

“Divide”: Yahoo breaks up content into different areas of

expertise

“Divide” up the content so that you always have best information in whatever areas you are looking for

“You”: Yahoo is a trustworthy friend to you

“You” are Yahoo’s friend!

“CONQUER” as we lead you on

“Conquer”: Yahoo is your peer leader

“The World”: Yahoo takes you beyond mere news and information

“THE WORLD” of content on your palm

We know the target market Millennials are the key to content consumption

We understand your strategy Our strategy works hand in hand with MaVens

We will make an impact to the bottom line in the long run Clear brand perception will acquire and retain users more

effectively

We will lead you to the forefront of the Future

Why our campaign? To define what it means to be

Yahoo, AGAIN!

THANK YOUQUESTIONS?