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Yohoo! Joint Internet Advertising Business Plan

Explore a hypothetical business plan from Yohoo!'s perspective on coopetition in the internet advertising industry, aiming to attract more search engines to the deal. Learn about the mission statement, revenue streams, benefits, industry players, financial projections, and more.

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Yohoo! Joint Internet Advertising Business Plan

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  1. Antitrust Group: Business Plan and Website Yohoo! Joint Internet Advertising Justin Chiumenti Amanda Mirabito Alex Stockdale

  2. Hypothetical: “Coopetition” • Yohoo! has 15% of search engine traffic. Biggest competitor, Likeus has 10%. • At a meeting, the CEOs agree to: • Provide links to each others websites. • Give reduced rates to advertisers who place ads on both search engines.

  3. Hypothetical: “Coopetition” • Soon, 10 search engines agree to this deal, making up 70% of search engine traffic. • Business plan is from Yohoo’s perspective, trying to attract further search engines to the deal (“Yohoo! Joint Internet Advertising”) • We used actual Yahoo! financial results for Yohoo! where available, made up everything else

  4. Business Plan: Mission Statement • “To organize and present the worlds data to our users -- how they want it, when they want it” • Yohoo makes money by displaying ads across properties: Yohoo! Mail, Yohoo! Messenger, Yohoo! Groups, Yohoo! Answers… • 4th most visited website on internet

  5. Business Opportunity • Why log into 10 different platforms to bid on search keywords? • Centralized account to bid on keywords across all partner websites • Save time for employees • Reduce headcount in your internet advertising department – save money

  6. Benefits of Joining Benefits to all parties

  7. Major Industry Players • Mid-single digit profit margin in general • We estimate we can raise this 30-50%, and get Webwiggler in the black • Market share may increase at expense of companies that don’t sign up – visitors like relevant ads

  8. Business Opportunity • Economies of scale – by using a single system, we can offer reduced rates on all websites • We already have 70% of search traffic represented – NOT partnering with us is getting expensive

  9. Financial Projections • Yohoo! And Likeus are the first two to agree • As more sites sign on, market share accelerates • So does gross margin – economies of scale

  10. Financial Projections • Expect Yohoo! to be break-even on platform in 2 years • Most major costs are upfront – programming • Variable costs are scalable – more advertisers, more servers • More sites add more market share, more revenue as costs drop • Expect to find additional synergies into the future

  11. Financial Projection • Actual data from a marketing agency • Display and paid search ads are the two fastest growing – 20% and 14% in 2014 • Classified internet ads stagnating • Paid search about half of all internet advertising

  12. Website • http://www.yohoonet.com

  13. Website • We used webs.com to build it • Built in templates, drag-and-drop modules

  14. Website • Drag and drop components: audio

  15. Website • Drag and drop: maps • Useful for contact info

  16. Website • Pre-functioning contact form

  17. Business Plan / Website • Questions?

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