During Yahoo’s Analyst Day, company executives emphasized the unique qualities Yahoo possesses in combination that its competitors do not.
It’s all about the content they have and the number of users they can reach with a recognized brand, speakers for the company emphasized in their Analyst Day presentation. Some impressive Internet facts emerged from their presentation as well.
Citing the Veronis Suhler Stevenson Communications Industry Forecast, 2006, Yahoo said US media growth from 2005 to 2009 would be 10 percent for the Internet, versus one percent for cable and satellite. The box office and broadcast media will be flat, while magazines and newspapers decline at rates of 3 and 10 percent, respectively.
Yahoo sees three areas where it can engage its audience more deeply. Increasing rates of broadband adoption in the world means Yahoo can offer richer media content to its audience. On the mobility side, millions of cellphones present an opportunity to stay with the consumer anywhere.
The company also cited search as a key driver of traffic, calling it both the means and the end to bringing people to Yahoo. When customers search, they are entering more sophisticated queries; Yahoo said the typical search query will increase to 3.3 words on average in 2006.
Their internal estimates peg the global online ad market reaching $55 billion by 2010. This year’s market should be worth about $31 billion in comparison.
Yahoo COO Dan Rosensweig noted in the presentation the example of advertising for the movie Mission Impossible III. 51 percent of the movie’s audience saw an online ad for the movie, and Rosensweig said the majority of those ads were viewed on Yahoo.
VP of Search Tim Cadogan’s part of the presentation will be of interest to our business readers who engage in online advertising. Yahoo plans to differentiate itself from the competition with the new advertising platform it has scheduled for a US launch near the end of 2006.
A Visible Quality Index of potential keywords will help businesses choose what is best for their campaigns. New tools on the platform will be accessible through an easier-to-use control panel as advertisers use enhanced bidding and forecasting options there.
Cadogan also emphasized geo-targeting, and that will be essential to success at local search, a market growing in importance and competition. Yahoo wants to assist those small businesses in bringing ad campaigns to the company, even as Yahoo continues its successful relationships with Fortune 500 brand marketers as well.
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David Utter is a staff writer for murdok covering technology and business.
