The Three Phases of Yahoo!

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Duration: 2:50
Source: Stanford ECorner
Author: Sue Decker, Yahoo! Inc.
Copyright: Creative Commons: by-nc-nd
Found: Nov 5, 2009

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There were basically three phases of Yahoo! Phase I from like '95 to 2000 was get big fast. That’s where we went from zero to about 300 million users. And it was all about - we were very de-centralized. We pushed down decision-making all over the globe in order to get our brand out there and attract users. This is the time when hundreds of companies are going public. Capital markets were on fire. Everyone understood that the commercialization of the internet was a really, really important thing. Didn't know which companies necessarily were going to make it, and so financed a lot of companies. From 2000 and 2006, I guess we got to 188 million in that first phase. We went from 188 to close to 500 million users. We became very, very strong in many of these what I'm calling user-product areas. We also started to monetize what we do through media sales and search marketing. So what that means is if you look at any page, I know you're all familiar with this, but just to set the table. There are pages that might have a text link ad that comes based on a search string that a user puts in. And then ads will be served back and they're noted as sponsored in certain cases and the rest of the algorithmically ranked results are served. But then pretty much everything else on the internet is monetized through what we call display ads, or video ads or even text link ads. But on inventory that's not search inventory. We had different groups of sales force focusing on display, video, text, anything non-search. We had a sales force focused on search. And we had all these products within the O and O - meaning owned and operated Yahoo! network - that could be monetized. Phase III is where we are now which is really flipping the model on its head and saying, "How do we organize around an audience independent of where they might want to go?" They might care about search, they might care about sports, they might care about weather. But how do we think about all of our audience products ...
Language: English
Category: Business
Tags: Sue Decker, Yahoo! Inc.
Country: United States


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