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Table of Contents
  • Overview
  • Reasons For Using Yahoo!
  • Limitations
  • Costs
  • Reach and Frequency
  • Scheduling
  • Impact
  • Audience Qualities
  • Responsiveness
  • Other Interesting Facts
  • Top Advertisers
  • References

"The fasted growing alternative media is the Internet, because the people that are using the internet are the consumers," Judy Greene stated, a Media Investment Analyst at NBC25. According to the Interactive Advertising Bureau (IAB) and accounting firm PricewaterhouseCoopers, overall ad revenue in 2009 hit $22.7 billion, down 3.4% from 2008.(Reisinger, 2010, Para. 3) Internet advertising revenue was down in 2009, but record-breaking spending during the fourth quarter shows that advertisers are slowly rebuilding their into investing their money in online ads. According to the Interactive Advertising Bureau (IAB) and accounting firm PricewaterhouseCoopers, overall ad revenue in 2009 hit $22.7 billion, down 3.4% from 2008.(Reisinger, 2010, Para. 3) But, it was the fourth quarter of 2009 that gave the researchers some hope for 2010. During that time, advertisers spent $6.3 billion on web advertising, which resulted in a 2.6% increase over the same period during 2008. (Reisinger, 2010, Para. 3)
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One of the major search engines in the virtual world today, is Yahoo!, in which they also provide advertisers with many options in ad placement throughout the search engine. Yahoo! was one of the first search engines created, and was developed by two US students, and also after Yahoo! was created many other competitors came in with their renditions of search engines. (Schumann and Thorson, 2007) One of the ways that Yahoo! is funded is by the sale of advertising space within search produced web pages.

Reasons for using Yahoo!
Yahoo! offers various ways to place ads on their website such as key word search, which is the main source of revenues for top internet search sites. With key-word search, advertisers are given the option to choose a word or words that are related to their business, and a link to its website is often shown in certain area of a search result page, such as the right side (on Yahoo!). (Yahoo Advertising, 2010) Yahoo! appeals to advertisers by using Yahoo's overture, by offering keyword search on a pay-per-click basis, which is very popular amongst advertisers today. Yahoo! also provides Yahoo! Web Analytics, which is a non-cost solution that provides advertisers information on the demographics and interests of the visitors that encounter their website. (Yahoo Advertising, 2010) According to Yahoo!, their Web Analytics Tool is more than a reporting tool, as it is more classified to them as a powerful, and flexible, data analysis solution. Another great resource that Yahoo! provides advertisers with is Yahoo! Search Solutions, which gives you the ability to allow your business to be easily accessed by potential customers when they are searching for products such as your own. (Yahoo Advertising, 2010) Sponsored Search or Content Match also allows ads for your business to appear in search results on Yahoo! and other sites throughout the Yahoo! distribution network.(Yahoo Advertising, 2010)

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Limitations of Advertising on Yahoo!
Although advertising on the internet is a very popular way to advertise for your company, some limitations are still present, and will hold you back. (J. Greene, interview, March 27, 2010) The latest research conducted showed statistics that 51% of the American Publics time spent using media is the television, and 16% is the internet. But, the one that is still growing is the internet, and it is growing through the computer, and through the cell phone.(J. Greene, interview, March 27, 2010) The limitation of this is that right now not everyone can afford a cell phone. One of the limitations is that you can reach everyone with internet or smart phones because of the subscription. Other limitations of web advertisements has to do with the fact that the websites that aren't mobile websites are hard to look at.(J. Greene, interview, March 27, 2010) Which means that you almost have to make mobile websites to provide the public with an easier way to view websites via cell phone, when they do not have the computer at hand. Another limitation is that not everybody has the mobile technology in their computer that allows them to use it away from their regular wireless.(J. Greene, interview, March 27, 2010) Without the use of WiFi it makes it impossible for people to access the internet, and your advertisements.

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Costs of Advertising on Yahoo!
Depending on how you wish to advertise on Yahoo!, the costs will vary in which way you choose to have your ads appear to consumers. If your top priority is to build instant imagery on search engines, Yahoo Search Marketing is a great option for advertising, because only after a short amount of time, you will gain success by being one of the top results of several major search engines. (Seach Engine Watch, 2010) Pay-Per-Click(PPC) is used on websites where advertisers pay their host, but only they only pay when their ad is clicked.(AdMedia, 2007, Para. 24) With search engines, advertisers typically use the option, Bid-Based PPC, on keyword phrases relevant to their target market. YSM, formerly Overture and GoTo, also allows sites to "bid" on the terms they wish to appear for. (Seach Engine Watch, 2010) YSM based sponsored listing based on cost-per-click. For example if you want the phrase "Top Music of 2010", and you wish to pay 10 cents a click, and no one else bids higher on you for that certain phrase, you receive that keyword as opposed to other competitors. But, if at any given time someone else bids higher than you for that word, you slip into the number two position, and your ad is shown slightly less. You could always bid a higher amount after that though, as it is a competitive market. If questioning if this is a good option for your business, many stress that it is well worth it, to open a YSM account and dabble around with paid listings.(Seach Engine Watch, 2010) The minimum deposit to access YSM is only $5, while you set your own daily budget. But, you have to be careful in your decision of what terms or phrases you choose, because you can easily stretch your budget out for a good amount of time and gain a positive amount of traffic.(Seach Engine Watch, 2010) But you can also do Flat-Rate PPC, which is where you can set up a contract with the website where you pay a fixed amount for each click. (Yahoo Advertising, 2010)

Reach and Frequency of Advertising on Yahoo!
Reach is one of the most important components of media objectives because not only does it affect the media mix, but it also affects what media vehicles are used in every media category.(J. Greene, interview, March 27, 2010) There are plenty of ways to go way beyond the expected levels of reach. One of your options is to analyze a certain audience, with a certain type of media vehicle, by using syndicated media research.(AdMedia, 2007, Para. 14) You do this to figure out who is using what type of media, and appeal to them by placing your advertisements throughout which media vehicle they are possessing. Another very popular method used to many media buyers is called roadblocking, which is when the commercials are placed in the same time slot on multiple major television networks. (AdMedia, 2007, Para. 15) That way, if they see the commercial and switch the channel to a different station, it still appears. The interesting fact about this is that roadblocking can also be used on the internet as well. The way that it works on a website is the media planner buys a time period of 24-hours on a certain website.(AdMedia, 2007, Para. 15) For example, Coke did this for its new product C2, and the company bought an ad space on the front page of Yahoo!. It was extremely effect simply for the fact that Yahoo!'s home page receives are 25 million visitors a day.(AdMedia, 2007, Para. 15)

Although, opposite to reach, a high level of frequency may be effective by just advertising in just a few media vehicles, to increase audience awareness within the certain media vehicles.(AdMedia, 2007, Para. 17) For example, an advertisement that appears five times on one website in a half hour, will produce a higher awareness of your ad towards consumer, rather than an ad that appears on five different websites in a half hour.

Scheduling of Advertising on Yahoo!
Scheduling is basically when you determine the time where you can produce the most business by sharing your ad through various media vehicles. (J. Greene, interview, March 27, 2010) Scheduling depends on your seasonality of the business, and if there is a reason you don't want to advertise during a certain time, you do not have to. You shouldn't pick a time to advertise when your product will not be sold, no matter how cheap it is. On your decision as to when you want to advertise, you have three options: continuity, pulse, and flighting.(AdMedia, 2007, Para. 34) Continuity is when you spread your budget evenly throughout all the months of the year. Pulsing is when you spend a low amount during certain months or time periods, and some months you spend a larger amount of your budget.(Armstrong, 2000) Flight is when you spend a large amount of money during some months, and no money during other months. Media planners use these three different methods depending on what kind of product they are directed to advertise.(AdMedia, 2007, Para. 35) For example, NorthFace won't be advertising for their heavy duty winter jackets in July, and Billabong won't be advertising bathing suits in the dead of winter (depending on your demographics). Yahoo! allows you to chose when you want to advertise, so you can use any of the three options to advertise your product through their search engine. (Yahoo Advertising, 2010)

Impact of Advertising on Yahoo!
The impact of advertising through Yahoo! can be measured through multiple ways (Schumann and Thorson, 2007):

1. Brand Awareness- How many of the target audience are aware of the advertised brand?
2. Comprehension- Does the target audience understand the advertised brand? Is there any miscomprehension?
3. Conviction- Is the target audience convinced by ads? How do they like the advertised brands?
4. Action- How many of the target audience have purchased the advertised brand as a result of the media campaign?

Not only can the effectiveness of the ad be accounted for by those four methods, another popular way to measure the impact of your ad is Tracking. Tracking is the method in which media buyers use to view the impact of their online ads to their audience.(AdMedia, 2007, Para. 52) When advertising on Yahoo! and someone clicks on your banner ad, Web servers make a note of that action. Tracking is important to media buyers, simply because the buyers are able to estimate the "response" of the audience in coordination with their advertisement. This method is becoming such a popular tool amongst media buyers because not only can they estimate the response, they can also estimate how effective their ad is on each website that their ad is placed.(Armstrong, 2000)

Audience Qualities
Usually, the audience qualities of people using Alternative Media such as Yahoo! and other search engines such as Google, MSN, and Ask, are that they are people that will keep spending money and are under the age of around forty. They are people that are buying all the new homes, cars, clothing, and spending money on other extracurricular activities. The reasoning behind this is that, as new media emerges, they will be the ones that will be able to afford it, and be able to keep up-to-date with the latest technology. (J. Greene, interview, March 27, 2010)

Yahoo! allows you to reach large, qualified audiences with their Targeting solutions. Yahoo! Targeting solutions (including Geographic Targeting, Demographic Targeting, Behavioral Targeting, and other targeting options) is designed to help you reach audiences with very focused messages to allow you to achieve total success in your branding and performance goals. (Yahoo Advertising, 2010) Yahoo!’s highly successful and highly recommended targeting tools help turn audiences into customers, and help you pinpoint the people who will add to the success of your business because they are interested. (Yahoo Advertising, 2010) Yahoo! uses a very smart way to help produce a good demographic profile for advertisers who use their services. Online users that create a customized "my yahoo" webpage, do not only receive a listing of news, sports, weather, etc., they create a larger picture for businesses to correctly advertise to them. When creating a profile, you give them interests and information about yourself such as psychographics and demographics.(Yahoo Advertising, 2010) By doing that, you are giving Yahoo! an idea of what type of advertisements you would click on while visiting their websites inside the search engine. Also, depending on where you log on to Yahoo! at in the world, advertisements for your demographic will pop up.(Yahoo Advertising, 2010) For example, if you type in a phrase into the search bar, an advertisement that relates to your search phrase should appear somewhere on the search results page.

Responsiveness to Advertising on Yahoo!
By conducting different types of research, media buyers can measure the response of their ads.(Schumann and Thorson, 2007) Certain types of methods they can use to obtain knowledge on the audiences responses to advertisement throughout various media vehicles is surveys, feedback, tracking, and observation. Each way is effective in obtaining the overall responsiveness of the audience.(AdMedia, 2007, Para. 34)

1. Surveys- conducted among a sampling of the target audience throughout different points in the campaign (Start, Middle, and End)
2. Feedback- collected to measure the media and ad exposure of the target audience.
3. Tracking- The measurement method that media buyers use to track the effectiveness of online ads.
4. Observation- Used to collect audience reaction information at the points of purchase or during marketing events

Yahoo! makes it possible for advertisers to successfully develop an accurate idea of the responsiveness to their advertisements. One unique tool they offer is the Yahoo! Buzz Index, which lets you check daily and weekly changes in the public’s interest towards your online ads.(Yahoo Advertising, 2010) This is based off of both geographic and demographic parameters. Yahoo! also has tracking and analytic tools that can help the advertiser out as well. After Yahoo! teamed up with Dynamic Logic as well as other leading online research companies, they made it possible to enable companies to measure the effectiveness of their campaign in terms of incremental brand awareness, correct message association, brand favorability, and purchase interest. (Yahoo Advertising, 2010)

Yahoo! Buzz Index
Yahoo! Buzz Index

Other Interesting Facts
Yahoo! CEO Carol Bartz has come up with the idea that Yahoo! offers three key items to its advertisers: science, art and scale. She says that with these three elements, Yahoo! can help advertisers and agencies conquer the online advertising world. (Sweat, 2001)

With science, which is “incredibly important”, Bartz says, Yahoo! can advertise better insights, data, and targeting. Bartz explains that this means “less wasted impressions and a better ability to reach your audience.”(Sweat, 2001)
Art is the next step, to help go along with science for the fact that art helps you to be creative as you want to be. To catch your audiences eye, one of the main aspects to a well designed ad is in the art of it. Bartz states that Yahoo’s commitment to you [the advertiser] is to work with you to help create a fantastic, attractive advertisement. In its efforts to appeal to the advertisers to be more hands on with developing new ad formats, they invented a new program called Digital AdVentures, which also allows you to work directly with Yahoo!. (Sweat, 2001)
Scale offers another key piece to their new campaign, especially with over 600 million people who view Yahoo! every month. With this being mentioned, Bartz explains that it is easy for them to find you “passion groups at scale” and “audiences for you at scale”.(Sweat, 2001)
It sounds almost too good to be true, but as Bartz explained a deal made with Wal-Mart, Yahoo!’s science, art and scale is perfect to reach your target audience. This was Wal-Mart’s hugest advertising plan with an online publisher, and it reached its target audience at a very large scale. Yahoo! predicts and promises Wal-Mart that they will reach to an estimated amount of 23 million moms, at an average of 5.6 times, every month.(Sweat, 2001)

Top Advertisers on Yahoo!
The latest research I found on the most successful advertisers, was last published in June 2009.

Top 100 Yahoo Advertisers by Keyword in June '09




Change from Prior Month (%)































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Armstrong, S., & Barrett, N. (2000). Advertising on the Internet (Second Edition): How to Get Your Message Across on the World Wide Web (2nd ed. ed.). London: Kogan Page.
Paid Search Advertising: Google AdWords, Yahoo Search Marketing & Microsoft adCenter - Search Engine Watch (SEW). (2007, March 12). Search Engine Marketing, Search Engine Optimization (SEO) and Paid Search Advertising (PPC) - Search Engine Watch (SEW). Retrieved April 11, 2010, from
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Schumann, D., & Thorson, E. (2007). Internet Advertising: Theory and Practice (2 ed.). Chicago: Routledge.
Sweat, J. (2001, March 10). Science, Art and Scale « Yahoo! Advertising Blog. Yahoo! Advertising Blog. Retrieved April 11, 2010, from
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