WebProNews

Tag: search alliance

  • Microsoft adCenter About To Have 10,000 Less Cities To Target

    Microsoft announced some new location targeting changes that it’s getting ready to implement in adCenter, which provides the ads on not only Bing, but Yahoo in an increasing number of countries.

    The changes are only coming to the U.S. and Canada for now, however. Microsoft is removing about 10,000 cities from adCenter targeting, starting in mid to late May.

    “Because these cities have seen no measurable traffic, this change will have no negative impact on the performance of your campaigns,” says Microsoft’s Peter Yang. “If you are targeting a city that will be removed, we recommend that you update your settings to target a city supported by adCenter to gain more traffic.”

    Microsoft provides a downloadable spreadsheet, where you can see all of the locations that are going away, and their corresponding locations that you should be targeting. Find the ones you need to be targeting, then simply go into adCenter and replace the non-supported ones with the corresponding supported ones.

    Microsoft will pause any campaigns or ad groups that only target cities that are being removed. The default target will be set to worldwide. In other words, this probably isn’t something you want to ignore. If some supported cities are sprinkled in, those cities will still be targeted. If you’re using the API to call non-supported cities, an error message will appear.

    If you think that losing some of these cities will hurt your campaign, Microsoft aims to convince you otherwise. The company says you are likely to see an increase in impressions (though you probably know your campaign better than anyone, and it might depend on your reasons for targeting select cities).

  • Microsoft adCenter: New Changes Live, More In Testing

    Microsoft is discussing some changes it has rolled out to adCenter over the past few weeks. They should be improvements to the platform, as the company says they’re all based almost exclusively on customer feedback.The company runs down the list of changes in a blog post.

    Changes include:

    • Ease of navigation in Web UI and Desktop: Menu redesign to allow for easy discovery of features
    • Browser Compatibility: adCenter support for Chrome and Safari
    • Improving Desktop Performance: Faster and more reliable experience in managing bulk tasks
    • Historical and Aggregated Quality Score: Improves campaign performance by having greater visibility into quality scores

    In addition to these, they have several features currently in testing with select advertisers:

    • URL by Match Type: Beginning this week, we are introducing new functionality that will provide more precise control over advertiser campaigns. In addition to the ability to assign unique destination URLs for each keyword match type within the same ad group, advertisers may also assign unique parameters. The team is releasing this feature in waves beginning this week continuing through the end of October. Advertisers will receive a notification email at least one week before this feature is enabled for their account.
    • Improved Location Targeting: Advertisers may now reach more relevant users in targeted locations with fewer steps. Also, advertisers can now leverage new advanced location options to target users by physical location or by their physical location and intent.
    • Broad Match Modifier: A targeting feature that lets advertisers create keywords which have greater reach than phrase match, and more control than broad match. Adding modified broad match keywords help advertisers get more clicks and conversions at an attractive ROI, especially if they mainly use exact and phrase match keywords today.

    • According to the company, advertisers should expect these features to be generally available soon. On top of all of this, the company is working to launch more interactive ad formats for mobile.

    Last week, Microsoft announced an update to how it handles negative keywords.

    adCenter, of course provides the paid search ads behind not only Bing, but Yahoo. Tthe adCenter portion of the companies’ search alliance is still rolling out to more countries. Last month, Microsoft announced the migration of Yahoo Search Marketing accounts in the UK, Ireland and France. IT has already been complete in the U.S. and Canada (though the organic search part is already worldwide).

    In a recent announcement, Yahoo declared that Yahoo/Bing clicks are 14% more valuable than Google clicks, while also having 9% more ROI. This was based on data from Efficient Frontier (Global Q4 2011 Digital Marketing Performance Report).

  • Yahoo and Bing: Look How Well Our Ads Are Doing

    As you may know, Microsoft and Yahoo have a “search alliance” which sees Microsoft powering Yahoo’s organic search results, as well as migrating Yahoo Search Marketing to Microsoft’s adCenter.

    The organic transition has already happened worldwide, and the ad platform transition is still in the process. In fact, the companies just announced that it’s rolling out in the UK, Ireland and France.

    In a post on Yahoo’s Advertising Solutions blog, Yahoo is pointing to four recent studies from Efficient Frontier, Marin Software, Rimm-Kaufman Group (RKG) and Ignition One, and pulling out some points made in these about the momentum of the search alliance’s paid side:

    According to Microsoft, the transition should be complete in the previously mentioned European countries by the end of April.

  • Microsoft / Yahoo Search Alliance Expands in UK, Ireland, France

    Microsoft and Yahoo have begun the migration of Yahoo Search Marketing accounts in the UK, Ireland and France to Microsoft adCenter. This is, of course, part of the “Search Alliance” between the two companies, with Microsoft powering Yahoo Search, both on the organic side of things, as well as on the paid side.

    The transition has been complete in the US, Canada and India on the paid side. For organic, it’s already complete globally.

    UK advertisers will get access to the combined audience in April, Microsoft says. The company expects to ramp up Yahoo traffic to the adCenter platform by March 19. The transition is expected to be complete by the end of April (in the UK, Ireland and). The entire Yahoo paid search volume is expected to be transitioned to adCenter within two weeks of March 19.

    “Yahoo! Search and France Bing will soon offer a competitive search offering that provides advertisers both quality audiences and opportunities to leverage strategic partnerships to efficiently deliver a strong return on investment,” says Microsoft’s Cedric Chambaz. “This means our advertisers are now just a couple months away from benefiting from the new joint audience. By then, you will be able to advertise on the full Yahoo! Search, Bing and their partner networks traffic through your adCenter campaigns.”

    In the meantime, Microsoft suggests getting an understanding of the new editorial policies, adjusting your budget for increased traffic and adjusting your bid strategy to maintain competitiveness.

    Chambraz says that in the coming weeks, the Microsoft Advertising blog will publish more in-depth recommendations.

  • Yahoo Revenue Drop Attributed to Microsoft Deal

    Yahoo Revenue Drop Attributed to Microsoft Deal

    Yahoo released its earnings report for Q3. This includes revenue excluding traffic acquisition costs of $1,072 million for the quarter, down 5% year-over-year. Income from operations also decreased 6% to $177 million compared to $189 year-over-year.

    The company says the decreases were mainly due to the Search Alliance with Microsoft.

    “We’re pleased that revenue, operating income and EPS were all above consensus this quarter,” said Tim Morse, CFO and Interim CEO,Yahoo!. “My focus, and that of the whole company, is to move the business forward with new technology, partnerships, products, and premium personalized content — all with an eye toward growing monetization.”

    The company is of course still looking for a permanent replacement for recently ousted CEO Carol Bartz.

    Here’s the release in its entirety:
    Yahoo! Reports Third Quarter 2011 Results

    Revenue, Operating Income, and EPS Exceed Consensus

    SUNNYVALE, Calif.–(BUSINESS WIRE)– Yahoo! Inc. (NASDAQ:YHOO) today reported results for the quarter ended September 30, 2011.

    Revenue excluding traffic acquisition costs (“revenue ex-TAC”) was $1,072 million for the third quarter of 2011, a 5 percent decrease from the third quarter of 2010. Income from operations decreased 6 percent to $177 million in the third quarter of 2011, compared to $189 million in the third quarter of 2010. The year over year decreases were primarily due to the revenue share related to the Search Agreement with Microsoft.

    GAAP revenue was $1,217 million for the third quarter of 2011, a 24 percent decrease from the third quarter of 2010, primarily due to the required change in revenue presentation related to the Search Agreement and the associated revenue share with Microsoft.

    Net earnings per diluted share decreased 21 percent to $0.23 in the third quarter of 2011, compared to $0.29 in the third quarter of 2010. Adjusted for the two items noted below, diluted earnings per share increased 32 percent to $0.21 in the third quarter of 2011, compared to$0.16 in the third quarter of 2010. Net earnings per diluted share for the third quarter of 2011 included a benefit of $0.02 per diluted share related to the dilution of the Company’s ownership interest in Alibaba Group as a result of option exercises and the issuance of stock toAlibaba Group employees during its quarter ended June 30, 2011. Net earnings per diluted share for the third quarter of 2010 included a benefit of $0.13 per diluted share related to the gain on sale of HotJobs.

    Financials at a Glance

    Quarterly Results (in millions, except percentages and per share amounts)
    Q3 2010 Q3 2011 Percent Change
    Revenue ex-TAC $1,124 $1,072 (5)%
    GAAP revenue $1,601 $1,217 (24)%
    Income from operations $189 $177 (6)%
    Net earnings $396 $293 (26)%
    Net earnings per diluted share $0.29 $0.23 (21)%

     

    “We’re pleased that revenue, operating income and EPS were all above consensus this quarter,” said Tim Morse, CFO and Interim CEO,Yahoo!. “My focus, and that of the whole company, is to move the business forward with new technology, partnerships, products, and premium personalized content — all with an eye toward growing monetization.”

    Business Highlights

    • Yahoo! is home to 10 number one properties globally and ranks among the top three in 21 categories worldwide. Yahoo! has ten out of the top ten original video programs in the U.S. on the Web (Source: comScore Media Builder Custom Report, US, August 2011, among a set including more than 75 original video programs, as custom-defined by Yahoo!, on the following properties: Yahoo!, YouTube,Hulu, MSN, AOL, Forbes, PopSugar, IGN, TMZ, New York Times, Smosh.com, ABC News, Sugar, Funny or Die, She Knows, CraveOnline).
    • Yahoo! continued to modernize its technology platforms, with 28 additional sites across the Americas, EMEA and Asia Pacific going live on the new global Yahoo! Publishing Platform, bringing the total to 95.
    • Yahoo! and ABC News announced a strategic alliance that combines Yahoo! News’ unmatched audience, as well as its depth and breadth of content, with ABC News’ global news gathering operation and trusted anchors and reporters. The alliance kicked off with the launch of GoodMorningAmerica.com on Yahoo! and a live stream of anchor George Stephanopoulos interviewing President Barack Obama live at the White House.
    • Yahoo! introduced a full slate of original, premium, TV-quality Web shows in tandem with the beta launch of its re-vamped video destination, Yahoo! Screen. The eight new shows add to Yahoo!’s existing industry-leading video programming and star top Hollywoodtalent including Judy Greer (The Descendants, Arrested Development), Niecy Nash (Reno 911, Dancing with the Stars), Cameron Mathison (All My Children, Dancing with the Stars), and Morgan Spurlock (Super-Size Me, 30 Days), among others.
    • Yahoo! was the exclusive live broadcast partner for the William J. Clinton Foundation’s special concert titled “A Decade of Difference: A Concert Celebrating 10 Years of the William J. Clinton Foundation.” The concert included special performances by Stevie Wonder, Lady Gaga, The Edge and Bono, Usher, Juanes, Kenny Chesney and K’naan.
    • Yahoo! launched a new way to discover and connect with the world’s most popular content on both Yahoo! and Facebook. Beginning with Yahoo! News in the U.S., people can discover and connect around the news and information they are enjoying on Yahoo! seamlessly through updates on Facebook. People will also be able to feature their TV watching activity on IntoNowTM from Yahoo! on their Facebook profile.
    • As part of Hispanic Heritage Month, Yahoo! live-streamed the first-ever Hispanic-focused online roundtable with President Barack Obama, giving people the opportunity to submit questions to the President on the issues that are important to them.
    • Yahoo! debuted MLB.com® Full Count, a new online video offering produced and powered by MLB.com in partnership with Yahoo! Sports that allows fans to follow live Major League Baseball action through the regular season. Yahoo! and Gow Broadcasting also launched Yahoo! Sports Radio. The new, national sports radio network can be heard on over 180 affiliate radio stations across the country, Sirius Satellite Radio®, and a number of digital and mobile partners.

    Search Alliance Impact

    Yahoo!’s results for the third quarter of 2011 reflect $53 million in search operating cost reimbursements from Microsoft under the Search Agreement, which amount is equal to the search operating costs incurred by Yahoo! in the third quarter. Search operating cost reimbursements are expected to continue to decline as Yahoo! fully transitions all markets to Microsoft’s search platform and the underlying expenses are no longer incurred under our cost structure. Our business outlook for total expenses reflects these anticipated savings.

    Yahoo!’s results for the third quarter of 2011 also reflect $4 million in transition cost reimbursements from Microsoft under the Search Agreement. During the third quarter Yahoo!’s cumulative transition costs exceeded the $150 million reimbursement cap specified in the Search Agreement. Transition costs in excess of the cap will not be subject to reimbursement.

    In order to create more financial certainty, Microsoft and Yahoo! recently agreed to extend the RPS Guarantee in the U.S. and Canadathrough March 2013. Microsoft and Yahoo! remain fully committed to the success of the Search Alliance, and the RPS Guarantee extension represents an important sign of that commitment.

    Third Quarter 2011 Revenue Highlights

    • Display revenue ex-TAC was $449 million, which was flat compared to $448 million for the third quarter of 2010.
    • GAAP display revenue was $502 million, a decrease of 2 percent, compared to $514 million for the third quarter of 2010.
    • Search revenue ex-TAC was $374 million, a 13 percent decrease compared to $428 million for the third quarter of 2010.
    • GAAP search revenue was $467 million, a 44 percent decrease compared to $839 million for the third quarter of 2010.

    Cash Flow and Cash Balance

    • Cash flow from operating activities for the third quarter of 2011 was $356 million, a 3 percent increase compared to $346 million for the same period of 2010.
    • Free cash flow was $247 million for the third quarter of 2011, a 1 percent decrease compared to $250 million for the same period of 2010.
    • Cash, cash equivalents, and investments in marketable debt securities were $2,870 million at September 30, 2011 compared to$3,629 million at December 31, 2010, a decrease of $759 million. During the third quarter of 2011, Yahoo! repurchased 44 million shares for $593 million. During the nine months ended September 30, 2011, Yahoo! repurchased 82 million shares for $1,203 million.

    Business Outlook

    Revenue ex-TAC for the fourth quarter of 2011 is expected to be in the range of $1,125 million to $1,235 million. Based on the terms of the Search Agreement with Microsoft, Microsoft retains a revenue share of 12 percent of the net (after TAC) search revenue generated on Yahoo! Properties and Affiliate sites in transitioned markets. Yahoo! reports the net revenue it receives under the Search Agreement as revenue and no longer presents the associated TAC within cost of revenue. Accordingly, for transitioned markets Yahoo! reports GAAP revenue associated with the Search Agreement on a net (after TAC) basis rather than a gross basis. For markets that have not yet transitioned, revenue continues to be recorded on a gross basis, and TAC is recorded in cost of revenue. GAAP revenue for the fourth quarter of 2011 is expected to be in the range of $1,275 million to $1,395 million. Total expenses (cost of revenue plus total operating expenses) for the fourth quarter of 2011 is expected to be in the range of $1,075 million to $1,135 million. Total expenses less TAC for the fourth quarter of 2011 is expected to be in the range of $925 million to $975 million. Income from operations for the fourth quarter of 2011 is expected to be in the range of $200 million to $260 million.

    Business outlook for revenue ex-TAC is being provided to reflect the underlying dynamics of the business during the Microsoft transition and to facilitate comparisons to prior periods.

    Conference Call

    Yahoo! will host a conference call to discuss third quarter 2011 results at 5 p.m. Eastern Time today. A live Webcast of the conference call, together with supplemental financial information, can be accessed through the Company’s Investor Relations Website athttp://investor.yahoo.com/results.cfm. In addition, an archive of the Webcast can be accessed through the same link. An audio replay of the call will be available for one week following the conference call by calling (888) 286-8010 or (617) 801-6888, reservation number: 36003638.

    Note Regarding Non-GAAP Financial Measures

    This press release and its attachments include the following financial measures defined as non-GAAP financial measures by the Securities and Exchange Commission (“SEC”): revenue ex-TAC; free cash flow; total expenses less TAC; non-GAAP net income; and non-GAAP net income per diluted share. These measures may be different than non-GAAP financial measures used by other companies. The presentation of this financial information is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with generally accepted accounting principles (“GAAP”). Explanations of the Company’s non-GAAP financial measures and reconciliations of these financial measures to the GAAP financial measures the Company considers most comparable are included in the accompanying “Note to Unaudited Condensed Consolidated Statements of Income,” “Supplemental Financial Data,” “GAAP Net Income to Non-GAAP Net Income Reconciliation,” and “Business Outlook.”

    About Yahoo!

    Yahoo! is the premier digital media company, creating deeply personal digital experiences that keep more than half a billion people connected to what matters most to them, across devices and around the globe. And Yahoo!’s unique combination of Science + Art + Scale connects advertisers to the consumers who build their businesses. Yahoo! is headquartered in Sunnyvale, California. For more information, visit the pressroom (pressroom.yahoo.net) or the company’s blog, Yodel Anecdotal (yodel.yahoo.com).

    “Affiliates” refers to the third-party entities that have integrated Yahoo!’s advertising offerings into their Websites or other offerings (those Websites and other offerings, “Affiliate sites”).

    “RPS Guarantee in the U.S. and Canada” refers to Microsoft’s obligation under the Search Agreement to guarantee Yahoo!’s revenue per search in the U.S. and Canada on Yahoo! Properties following the transition of paid search services to Microsoft’s platform in those markets, which was completed in the fourth quarter of 2010.

    “Search Agreement” refers to the Search and Advertising Services and Sales Agreement between Yahoo! and Microsoft Corporation.

    “TAC” refers to traffic acquisition costs. TAC consists of payments to Affiliates and payments made to companies that direct consumer and business traffic to Yahoo! Properties.

    “Yahoo! Properties” refers to the online properties and services that Yahoo! provides to users.

    This press release and its attachments contain forward-looking statements concerning Yahoo!’s expected financial performance (including, without limitation, statements and information in the Business Outlook and Search Alliance Impact sections and the quotation from management), as well as Yahoo!’s strategic and operational plans. Risks and uncertainties may cause actual results to differ materially from the results predicted, and reported results should not be considered as an indication of future performance. The potential risks and uncertainties include, among others, the impact of management and organizational changes; the implementation and results of Yahoo!’s ongoing strategic and cost initiatives; Yahoo!’s ability to compete with new or existing competitors; reduction in spending by, or loss of, advertising customers; the demand by customers for Yahoo!’s premium services; interruptions or delays in the provision of Yahoo!’s services; security breaches; acceptance by users of new products and services; risks related to joint ventures and the integration of acquisitions; risks related to Yahoo!’s international operations; failure to manage growth and diversification; adverse results in litigation, including intellectual property infringement claims and recent derivative and class actions related to Alipay; Yahoo!’s ability to protect its intellectual property and the value of its brands; dependence on key personnel; dependence on third parties for technology, services, content, and distribution; general economic conditions and changes in economic conditions; transition and implementation risks associated with the Search Agreement with Microsoft Corporation; and risks related to the Framework Agreement with Softbank Corporation, Alibaba Group and other parties regarding Alipay, including the failure to consummate or delays in consummating the transactions contemplated by the agreement. All information set forth in this press release and its attachments is as of October 18, 2011. Yahoo! does not intend, and undertakes no duty, to update this information to reflect subsequent events or circumstances; however, Yahoo! may update its business outlook or any portion thereof at any time in its discretion. More information about potential factors that could affect the Company’s business and financial results is included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2010, and Quarterly Report on Form 10-Q for the quarter ended June 30, 2011, which are on file with the SEC and available on the SEC’s website at www.sec.gov. Additional information will also be set forth in those sections in Yahoo!’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2011, which will be filed with the SEC in the fourth quarter of 2011.

    Yahoo!, IntoNow, and the Yahoo! logos are trademarks and/or registered trademarks of Yahoo! Inc. All other names are trademarks and/or registered trademarks of their respective owners.

    Yahoo! Inc.
    Unaudited Condensed Consolidated Statements of Income
    (in thousands, except per share amounts)
    Three Months Ended Nine Months Ended
    September 30, September 30,
    2010 2011 2010 2011
    Revenue $ 1,601,203 $ 1,216,665 $ 4,799,542 $ 3,660,046
    Cost of revenue 680,754 359,276 2,069,858 1,107,893
    Gross profit 920,449 857,389 2,729,684 2,552,153
    Operating expenses:
    Sales and marketing 320,977 290,486 965,983 833,032
    Product development 269,725 254,958 804,354 744,538
    General and administrative 126,816 128,977 362,577 383,531
    Amortization of intangibles 8,018 8,435 24,000 25,067
    Restructuring charges, net 5,758 (2,721 ) 20,222 8,091
    Total operating expenses 731,294 680,135 2,177,136 1,994,259
    Income from operations 189,155 177,254 552,548 557,894
    Other income, net 191,351 18,046 290,267 17,407
    Income before income taxes and earnings in equity interests 380,506 195,300 842,815 575,301
    Provision for income taxes (86,413 ) (55,731 ) (204,381 ) (163,480 )
    Earnings in equity interests 104,166 158,775 288,247 349,857
    Net income 398,259 298,344 926,681 761,678
    Less: Net income attributable to noncontrolling interests (2,128 ) (5,053 ) (7,038 ) (8,423 )
    Net income attributable to Yahoo! Inc. $ 396,131 $ 293,291 $ 919,643 $ 753,255
    Net income attributable to Yahoo! Inc. common stockholders per share – diluted(1) $ 0.29 $ 0.23 $ 0.66 $ 0.58
    Shares used in per share calculation – diluted 1,343,094 1,259,576 1,382,255 1,296,040
    Stock-based compensation expense by function:
    Cost of revenue $ 698 $ 956 $ 2,289 $ 2,479
    Sales and marketing 19,066 16,759 54,284 42,829
    Product development 22,647 21,093 81,152 64,296
    General and administrative 8,686 12,139 31,752 35,507
    Restructuring expense reversals, net – – – (1,278 )
    (1) The impact of outstanding stock awards of entities in which the Company holds equity interests that are accounted for using the equity method reduced the Company’s diluted earnings per share by $0.01 for the nine months ended September 30, 2010.
    Supplemental Financial Data:
    Revenue ex-TAC $ 1,124,419 $ 1,071,674 $ 3,382,978 $ 3,212,128
    Free cash flow $ 250,241 $ 246,714 $ 441,090 $ 398,790

     

    Yahoo! Inc.
    Note to Unaudited Condensed Consolidated Statements of Income

    This press release and its attachments include the non-GAAP financial measures of revenue excluding traffic acquisition costs (“revenue ex-TAC”), free cash flow, total expenses (GAAP cost of revenue plus GAAP total operating expenses) less TAC, non-GAAP net income, and non-GAAP net income per diluted share, which are reconciled to revenue, cash flow from operating activities, total expenses (GAAP cost of revenue plus GAAP total operating expenses), net income attributable to Yahoo! Inc., and net income attributable to Yahoo! Inc. common stockholders per share – diluted, which we believe are the most comparable GAAP measures. We use these non-GAAP financial measures for internal managerial purposes and to facilitate period-to-period comparisons. We describe limitations specific to each non-GAAP financial measure below. Management generally compensates for limitations in the use of non-GAAP financial measures by relying on comparable GAAP financial measures and providing investors with a reconciliation of the non-GAAP financial measure to the most directly comparable GAAP financial measure or measures. Further, management uses non-GAAP financial measures only in addition to and in conjunction with results presented in accordance with GAAP. We believe that these non-GAAP financial measures reflect an additional way of viewing aspects of our operations that, when viewed with our GAAP results, provide a more complete understanding of factors and trends affecting our business and operating costs. These non-GAAP measures should be considered as a supplement to, and not as a substitute for, or superior to, revenue, cash flow from operating activities, total expenses, net income attributable to Yahoo! Inc., and net income attributable toYahoo! Inc. common stockholders per share – diluted calculated in accordance with GAAP.

    Revenue ex-TAC is a non-GAAP financial measure defined as GAAP revenue less TAC. TAC consists of payments made to third-party entities that have integrated our advertising offerings into their Websites or other offerings (those Websites and other offerings, “Affiliate sites”) and payments made to companies that direct consumer and business traffic to Yahoo!’s online properties and services (“Yahoo! Properties”). Based on the terms of the Search Agreement with Microsoft, Microsoft retains a revenue share of 12 percent of the net (after TAC) search revenue generated on Yahoo! Properties and Affiliate sites in transitioned markets. Yahoo! reports the net revenue it receives under the Search Agreement as revenue and no longer presents the associated TAC within cost of revenue. Accordingly, for transitioned markets Yahoo! reports GAAP revenue associated with the Search Agreement on a net (after TAC) basis rather than a gross basis. For markets that have not yet transitioned, revenue continues to be recorded on a gross basis, and TAC is recorded in cost of revenue. We present revenue ex-TAC to provide investors a metric used by the Company for evaluation and decision-making purposes during the Microsoft transition and to provide investors with comparable revenue numbers when comparing periods preceding, during and following the transition period. We present revenue ex-TAC business outlook to reflect the underlying dynamics of the business during the Microsoft transition and to facilitate comparisons to prior periods. A limitation of revenue ex-TAC is that it is a measure which we have defined for internal and investor purposes that may be unique to the Company, and therefore it may not enhance the comparability of our results to other companies in our industry who have similar business arrangements but address the impact of TAC differently. Management compensates for these limitations by also relying on the comparable GAAP financial measures of revenue and cost of revenue, which includes TAC in non-transitioned markets.

    Free cash flow is a non-GAAP financial measure defined as cash flow from operating activities (adjusted to include excess tax benefits from stock-based awards), less acquisition of property and equipment, net and dividends received from equity investees. We consider free cash flow to be a liquidity measure which provides useful information to management and investors about the amount of cash generated by the business after the acquisition of property and equipment, which can then be used for strategic opportunities including, among others, investing in the Company’s business, making strategic acquisitions, strengthening the balance sheet, and repurchasing stock. A limitation of free cash flow is that it does not represent the total increase or decrease in the cash balance for the period. Management compensates for this limitation by also relying on the net change in cash and cash equivalents as presented in the Company’s unaudited condensed consolidated statements of cash flows prepared in accordance with GAAP which incorporates all cash movements during the period.

    Total expenses less TAC is a non-GAAP financial measure defined as total expenses (GAAP cost of revenue plus GAAP total operating expenses) less TAC. We consider total expenses less TAC to be a useful indicator of our operating costs. We exclude TAC from this measure because TAC generally varies based on the revenue we earn from traffic supplied by certain third parties, and doing so assists investors in understanding the operating cost structure of our business. A limitation associated with the non-GAAP measure of total expenses less TAC is that it does not reflect TAC. Management compensates for this limitation by also relying on the comparable GAAP financial measures of cost of revenue and income from operations, each of which includes TAC.

    Non-GAAP net income is defined as net income attributable to Yahoo! Inc. excluding certain gains, losses, expenses, and their related tax effects that we do not believe are indicative of our ongoing results. We consider non-GAAP net income and non-GAAP net income per diluted share to be profitability measures which facilitate the forecasting of our results for future periods and allow for the comparison of our results to historical periods. A limitation of non-GAAP net income and non-GAAP net income per diluted share is that they do not include all items that impact our net income and net income per diluted share for the period. Management compensates for this limitation by also relying on the comparable GAAP financial measures of net income attributable to Yahoo! Inc. and net income attributable to Yahoo! Inc. common stockholders per share – diluted, both of which include the gains, losses, expenses and related tax effects that are excluded from non-GAAP net income and non-GAAP net income per diluted share.

    Yahoo! Inc.
    Supplemental Financial Data
    (in thousands)
    Three Months Ended

    September 30,

    		 Nine Months Ended

    September 30,
    2010 2011 2010 2011
    Revenue for groups of similar services:
    Display $ 514,415 $ 502,102 $ 1,519,575 $ 1,548,262
    Search 838,697 466,785 2,521,951 1,388,580
    Other 248,091 247,778 758,016 723,204
    Total revenue $ 1,601,203 $ 1,216,665 $ 4,799,542 $ 3,660,046
    Revenue excluding traffic acquisition costs (“revenue ex-TAC”) for groups of similar services:
    GAAP display revenue $ 514,415 $ 502,102 $ 1,519,575 $ 1,548,262
    TAC associated with display revenue (66,424 ) (52,657 ) (199,915 ) (161,396 )
    Display revenue ex-TAC $ 447,991 $ 449,445 $ 1,319,660 $ 1,386,866
    GAAP search revenue $ 838,697 $ 466,785 $ 2,521,951 $ 1,388,580
    TAC associated with search revenue for non-transitioned markets (410,328 ) (92,334 ) (1,215,109 ) (286,382 )
    Search revenue ex-TAC $ 428,369 $ 374,451 $ 1,306,842 $ 1,102,198
    Other GAAP revenue $ 248,091 $ 247,778 $ 758,016 $ 723,204
    TAC associated with other GAAP revenue (32 ) – (1,540 ) (140 )
    Other revenue ex-TAC $ 248,059 $ 247,778 $ 756,476 $ 723,064
    Revenue ex-TAC:
    GAAP revenue $ 1,601,203 $ 1,216,665 $ 4,799,542 $ 3,660,046
    TAC (476,784 ) (144,991 ) (1,416,564 ) (447,918 )
    Revenue ex-TAC $ 1,124,419 $ 1,071,674 $ 3,382,978 $ 3,212,128
    Revenue ex-TAC by segment:
    Americas:
    GAAP revenue $ 1,146,511 $ 791,240 $ 3,434,739 $ 2,418,209
    TAC (291,676 ) (37,493 ) (855,494 ) (115,038 )
    Revenue ex-TAC $ 854,835 $ 753,747 $ 2,579,245 $ 2,303,171
    EMEA:
    GAAP revenue $ 133,094 $ 148,494 $ 415,432 $ 465,145
    TAC (48,717 ) (52,197 ) (152,191 ) (167,357 )
    Revenue ex-TAC $ 84,377 $ 96,297 $ 263,241 $ 297,788
    Asia Pacific:
    GAAP revenue $ 321,598 $ 276,931 $ 949,371 $ 776,692
    TAC (136,391 ) (55,301 ) (408,879 ) (165,523 )
    Revenue ex-TAC $ 185,207 $ 221,630 $ 540,492 $ 611,169
    Total revenue ex-TAC $ 1,124,419 $ 1,071,674 $ 3,382,978 $ 3,212,128
    Direct costs by segment (2):
    Americas $ 135,899 $ 134,672 $ 426,136 $ 403,612
    EMEA 27,730 35,488 88,878 100,165
    Asia Pacific 36,686 53,278 106,794 146,369
    Global operating costs (3) 516,101 470,533 1,533,714 1,376,852
    Restructuring charges, net 5,758 (2,721 ) 20,222 8,091
    Depreciation and amortization 161,993 152,223 485,209 474,034
    Stock-based compensation expense 51,097 50,947 169,477 145,111
    Income from operations $ 189,155 $ 177,254 $ 552,548 $ 557,894
    Reconciliation of cash flow from operating activities to free cash flow:
    Cash flow from operating activities $ 346,481 $ 356,166 $ 837,045 $ 892,472
    Acquisition of property and equipment, net (163,874 ) (123,942 ) (466,685 ) (463,006 )
    Dividends received from equity investees – – (60,918 ) (75,391 )
    Excess tax benefits from stock-based awards 67,634 14,490 131,648 44,715
    Free cash flow $ 250,241 $ 246,714 $ 441,090 $ 398,790
    (2) Direct costs for each segment include cost of revenue (excluding TAC) and other operating expenses that are directly attributable to the segment such as employee compensation expense (excluding stock-based compensation expense), local sales and marketing expenses, and facilities expenses. Prior to the fourth quarter of 2010, we included TAC in segment direct costs. For comparison purposes, prior period amounts have been revised to conform to the current presentation.
    (3) Global operating costs include product development, service engineering and operations, marketing, customer advocacy, general and administrative, and other corporate expenses that are managed on a global basis and that are not directly attributable to any particular segment.

     

    Yahoo! Inc.
    GAAP Net Income to Non-GAAP Net Income Reconciliation
    (in thousands, except per share amounts)
    Three Months Ended
    September 30,
    2010 2011
    GAAP Net income attributable to Yahoo! Inc. $ 396,131 $ 293,291
    (a) Restructuring charges, net 5,758 (2,721 )
    (b) Gain on sale of HotJobs (186,345 ) –
    (c) Non-cash gain related to the dilution of the Company’s ownership interest in Alibaba Group, which is included in earnings in equity interests – (25,083 )
    (d) To adjust the provision for income taxes to exclude the tax impact of items (a) through (b) above for the three months ended September 30, 2010 and September 30, 2011 5,223 365
    Non-GAAP Net income $ 220,767 $ 265,852
    GAAP Net income attributable to Yahoo! Inc. common stockholders per share – diluted $ 0.29 $ 0.23
    Non-GAAP Net income per share – diluted $ 0.16 $ 0.21
    Shares used in non-GAAP per share calculation – diluted 1,343,094 1,259,576
    Nine Months Ended
    September 30,
    2010 2011
    GAAP Net income attributable to Yahoo! Inc. $ 919,643 $ 753,255
    (a) Reimbursements from Microsoft for transition costs incurred in prior periods(4) (43,300 ) –
    (b) Gain on sale of Zimbra, Inc. (66,130 ) –
    (c) Restructuring charges, net 20,222 8,091
    (d) Gain on sale of HotJobs (186,345 ) –
    (e) Non-cash gain related to the dilution of the Company’s ownership interest in Alibaba Group, which is included in earnings in equity interests – (25,083 )
    (f) Yahoo!’s share of the non-cash loss related to impairments of assets held by Yahoo Japan, which is included in earnings in equity interests – 32,652
    (g) To adjust the provision for income taxes to exclude the tax impact of items (a) through (d) above for the nine months ended September 30, 2010 and September 30, 2011
    16,638 (3,224 )
    Non-GAAP Net income $ 660,728 $ 765,691
    GAAP Net income attributable to Yahoo! Inc. common stockholders per share – diluted (1) $ 0.66 $ 0.58
    Non-GAAP Net income per share – diluted $ 0.48 $ 0.59
    Shares used in non-GAAP per share calculation – diluted 1,382,255 1,296,040
    (1) The impact of outstanding stock awards of entities in which the Company holds equity interests that are accounted for using the equity method reduced the Company’s diluted earnings per share by $0.01 for the nine months ended September 30, 2010.
    (4) Non-GAAP net income excludes reimbursements for costs incurred in prior periods. The net $43 million reimbursement adjustment in the nine months ended September 30, 2010 is equal to the transition costs of $11 million and $32 millionincurred in the three months ended September 30, 2009 and December 31, 2009, respectively, in connection with the Search Agreement.

     

    Yahoo! Inc.
    Business Outlook
    The following business outlook is based on information and expectations as of October 18, 2011. Yahoo!’s business outlook as of today is expected to be available on the Company’s Investor Relations website throughout the current quarter. Yahoo! does not intend, and undertakes no duty, to update the business outlook to reflect subsequent events or circumstances; however, Yahoo! may update the business outlook or any portion thereof at any time at its discretion.
    Three Months
    Ending
    December 31, 2011
    (in millions)
    Revenue excluding traffic acquisition costs (“Revenue ex-TAC”): $ 1,125 – 1,235
    Total expenses less TAC: $ 925 – 975
    Income from operations: $ 200 – 260
    Reconciliations:
    Revenue excluding TAC:
    GAAP Revenue $ 1,275 – 1,395
    Less: TAC 150 – 160
    Revenue ex-TAC $ 1,125 – 1,235
    Total expenses less TAC:
    Total expenses (GAAP Cost of revenue + GAAP Total operating expenses) $ 1,075 – 1,135
    Less: TAC 150 – 160
    Total expenses less TAC $ 925 – 975

     

    Yahoo! Inc.
    Unaudited Condensed Consolidated Statements of Cash Flows
    (in thousands)
    Three Months Ended
    September 30,    		 Nine Months Ended
    September 30,
    2010 2011 2010 2011
    CASH FLOWS FROM OPERATING ACTIVITIES:
    Net income $ 398,259 $ 298,344 $ 926,681 $ 761,678
    Adjustments to reconcile net income to net cash provided by operating activities:
    Depreciation 132,048 128,922 387,240 404,823
    Amortization of intangible assets 29,945 28,791 97,969 87,784
    Stock-based compensation expense, net 51,097 50,947 169,477 143,833
    Non-cash restructuring charges 2,741 – 2,813 –
    Tax benefits from stock-based awards 69,346 (2,509 ) 91,268 9,974
    Excess tax benefits from stock-based awards (67,634 ) (14,490 ) (131,648 ) (44,715 )
    Deferred income taxes (13,151 ) 22,909 15,752 68,740
    Earnings in equity interests (104,166 ) (158,775 ) (288,247 ) (349,857 )
    Dividends received from equity investees – – 60,918 75,391
    Gain from sale of investments, assets, and other, net (170,319 ) (9,970 ) (222,900 ) 12,822
    Changes in assets and liabilities, net of effects of acquisitions:
    Accounts receivable, net (859 ) 69,400 59,464 156,092
    Prepaid expenses and other 48,765 (42,886 ) (18,502 ) 10,407
    Accounts payable (21,229 ) (16,495 ) (19,789 ) (27,316 )
    Accrued expenses and other liabilities 38,882 34,963 (169,707 ) (351,081 )
    Deferred revenue (47,244 ) (32,985 ) (123,744 ) (66,103 )
    Net cash provided by operating activities 346,481 356,166 837,045 892,472
    CASH FLOWS FROM INVESTING ACTIVITIES:
    Acquisition of property and equipment, net (163,874 ) (123,942 ) (466,685 ) (463,006 )
    Purchases of marketable debt securities (421,373 ) (488,702 ) (1,789,061 ) (1,613,298 )
    Proceeds from sales of marketable debt securities 864,488 185,000 1,371,852 1,067,229
    Proceeds from maturities of marketable debt securities 323,884 568,976 1,784,056 1,226,892
    Purchases of intangible assets (6,176 ) (60 ) (18,793 ) (11,020 )
    Proceeds from the sale of a divested business 225,000 – 325,000 –
    Proceeds from the sale of investments – 21,271 – 21,271
    Acquisitions, net of cash acquired – – (112,361 ) (68,812 )
    Other investing activities, net (546 ) (5,912 ) (19,392 ) (5,763 )
    Net cash provided by investing activities 821,403 156,631 1,074,616 153,493
    CASH FLOWS FROM FINANCING ACTIVITIES:
    Proceeds from issuance of common stock, net 16,063 8,150 99,667 106,697
    Repurchases of common stock (867,994 ) (593,485 ) (1,749,311 ) (1,202,504 )
    Excess tax benefits from stock-based awards 67,634 14,490 131,648 44,715
    Tax withholdings related to net share settlements of restricted stock awards and restricted stock units (3,644 ) (2,380 ) (44,383 ) (36,049 )
    Other financing activities, net (638 ) (812 ) (1,442 ) (8,333 )
    Net cash used in financing activities (788,579 ) (574,037 ) (1,563,821 ) (1,095,474 )
    Effect of exchange rate changes on cash and cash equivalents 52,930 (55,378 ) (7,710 ) (12,699 )
    Net change in cash and cash equivalents 432,235 (116,618 ) 340,130 (62,208 )
    Cash and cash equivalents, beginning of period 1,183,325 1,580,837 1,275,430 1,526,427
    Cash and cash equivalents, end of period $ 1,615,560 $ 1,464,219 $ 1,615,560 $ 1,464,219

     

    Yahoo! Inc.
    Unaudited Condensed Consolidated Balance Sheets
    (in thousands)
    December 31,
    2010    		 September 30,
    2011
    ASSETS
    Current assets:
    Cash and cash equivalents $ 1,526,427 $ 1,464,219
    Short-term marketable debt securities 1,357,661 650,593
    Accounts receivable, net 1,028,900 872,728
    Prepaid expenses and other current assets 432,560 416,809
    Total current assets 4,345,548 3,404,349
    Long-term marketable debt securities 744,594 754,767
    Property and equipment, net 1,653,422 1,725,556
    Goodwill 3,681,645 3,750,287
    Intangible assets, net 255,870 204,680
    Other long-term assets 235,136 218,215
    Investments in equity interests 4,011,889 4,469,702
    Total assets $ 14,928,104 $ 14,527,556
    LIABILITIES AND EQUITY
    Current liabilities:
    Accounts payable $ 162,424 $ 131,473
    Accrued expenses and other current liabilities 1,208,792 864,139
    Deferred revenue 254,656 205,978
    Total current liabilities 1,625,872 1,201,590
    Long-term deferred revenue 56,365 39,054
    Capital lease and other long-term liabilities 142,799 134,310
    Deferred and other long-term tax liabilities, net 506,658 647,483
    Total liabilities 2,331,694 2,022,437
    Total Yahoo! Inc. stockholders’ equity 12,558,129 12,460,109
    Noncontrolling interests 38,281 45,010
    Total equity 12,596,410 12,505,119
    Total liabilities and equity $ 14,928,104 $ 14,527,556

     

  • Yahoo Microsoft Search Alliance To Launch in Europe This Week

    Yahoo Microsoft Search Alliance To Launch in Europe This Week

    Yahoo issued an update today indicating that its “Search Alliance” with Microsoft will get underway in Europe as soon as August 3rd. That goes for Yahoo UK, France, Germany, Spain and Italy.

    It won’t be a full-on transition to the way it is here in the states, at least at first. Yahoo will switch to Bing results for organic search results only. Yahoo says advertisers should continue to manage their Yahoo Search Marketing accounts as usual, and that it will provide ample notice before the paid search transition in each respective market.

    “Search ad inventory from Yahoo!, Microsoft, and their respective partners will be combined into a new, unified search marketplace, giving advertisers of all sizes access to a combined audience of 607 million unique searchers worldwide,” the Search Alliance explains on its UK site. “In the UK and France, Yahoo! and Microsoft will combine their existing marketplaces. In other markets throughout Europe, Asia and Latin America, this transition will be seamless as Microsoft is already an existing Yahoo! partner, drawing from the Yahoo! marketplace.”

    “We have adjusted the planned timing of the paid search transition for the UK, France, and Ireland,” it says. “Yahoo! advertisers with accounts in the UK and France will not transition to adCenter in 2011. Advertisers should continue to manage and optimise their campaigns on Yahoo! Search Marketing and Microsoft Advertising adCenter separately. We will provide advertisers with updated timing information well in advance of when transition activities begin, with further details to help them plan and prepare.”

    For the time being, Yahoo is advising businesses to compare organic search rankings on Yahoo Search and Bing for keywords to help determine the potential impact on traffic and sales, and then to decide if they’d like to modify their paid campaigns. They’re also telling businesses to review the Bing webmaster tools and optimize for the Bing crawler.

  • Yahoo-to-Microsoft Ad Transition Period Drawing to a Close

    The deadline for Yahoo Search Marketing advertisers to transition their campaigns to Microsoft’s adCenter is approaching. You’ve had ample time to do, but there are no doubt some procrastinators out there. 

    "Given what a busy time of year this is for everyone, both personally and professionally, you may have the feeling that there’s something you’re supposed to do, but haven’t yet. Did you forget something?" asks Microsoft’s Ricky Poole. 

    "With all of the holiday hustle and bustle, I wanted to take a minute to remind any of you in the US and Canada who may still have campaigns in Yahoo! Search Marketing that the transition tool will be closing on January 5, 2011," he adds. "If you have not yet transitioned your PPC accounts from Yahoo! to adCenter, after January 5th you will need to do so manually through exporting and importing your campaigns."

    Yahoo/MIcrosoft transition period coming to end

    Yahoo and Microsoft completed the search transition in the U.S. and Canada in October. Microsoft even extended its adCenter support hours during the transition. 

    If you still have questions about the transition, you should be able to find your answers here. 

  • Microsoft, Yahoo Complete Search Transition in the U.S. and Canada

    Microsoft and Yahoo have completed their "Search Alliance" transition in the U.S. and Canada. 

    "As of today, adCenter powers 100% of paid search advertisements on both Bing and Yahoo!, partner sites and publisher networks in the U.S. and Canada," Yahoo and Microsoft said in a joint message to WebProNews. "The search alliance creates a competitive alternative in search, allowing advertisers to reach a combined audience of 163 million searchers in the U.S. and 15 million searchers in Canada via Bing and Yahoo! Managing a single account for both Bing and Yahoo! will let advertisers save time and simplify their campaigns."

    "The transition comes after months of testing and collaboration between Yahoo! and Microsoft, with strict attention being paid to protecting the quality of experience for publishers and advertisers during the upcoming holiday season," the companies said. "The paid search transition comes on the heels of both companies completing the transition of the back-end technology for English-language Yahoo! organic search results in the U.S. and Canada in August."

    Yahoo and Microsoft say that next up, Yahoo Mobile search ads will be transitioned to the Microsoft platform by the end of October. They will then start transitioning international markets next year, with all global customers and partners expected to be transitioned by early 2012. 

    "The organic search transitions will occur first on a market by market basis with paid search to follow," the companies said. "For organic search, the search alliance intends to start with our Spanish-speaking Latin America markets in Q1 2011; for paid search, the next set of markets will be UK, France, Ireland and India in Q2 2011."

    Last month, data from Nielsen showed that Microsoft had taken the number 2 spot in search market share in the U.S. for the first time, and that was even without Yahoo’s help. 

    The companies intended to have the transition ready in the U.S. before the holidays, and it appears that they achieved that.

  • Microsoft Extends adCenter Support Hours During Transition

    Microsoft just announced that it is extending its support hours for adCenter during its paid search transition. 

    "Whether you prefer to tweet, post a question in our forums or pick up the phone and speak to a real person, you’ve got several options for getting help with all things adCenter," says Microsoft’s Tina Kelleher. 

    The transition is of course already underway, but may take some time to be completed globally. Right now, they have contact information posted for the US, UK, Canada, France, and Singapore markets. 

    Microsoft Extends AdCenter Support

    Nielsen announced today that Bing has surpassed Yahoo in search market share for the United State for the first time, and that is not even taking the partnership between Microsoft and Yahoo into consideration. 

    Microsoft began powering Yahoo’s organic search results on August 24.

  • Bing Takes #2 Spot in Search, Even Without Yahoo’s Help

    Nielsen shared some new search market findings, indicating that Bing has overtaken Yahoo as the number two search engine in the U.S. for the first time. That’s MSN/Windows Live/Bing, to be more precise, which holds 13.9% of the market (as of August), according to the firm.

    Yahoo holds a 13.1% share, a decline from 14.6% in July. Google saw little change, but accounted for 65% of all U.S. searches. 

    The numbers do not take into account the Search Alliance between Microsoft and Yahoo, as Bing started officially powering Yahoo searches on August 24. Nielsen says, "If we combined Bing-powered search in August pro-forma, it would represent a 26% share of search."

    August Search Market Share according to Nielsen

    "In terms of a year-over-year comparison, Google has seen little change in its share of search while Yahoo! has seen a small but steady decline, going from a 16.0% share to 13.1% (a delta drop of 2.9% or a relative drop of 18%)," the firm says. "MSN/Windows Live/Bing’s share has grown from 10.7% in August 2009 to 13.9% (a delta increase of 3.2% or a relative increase of 30%)."

    Clearly, good things are happening for Bing, and with the Search Alliance firmly in place in the U.S. and Canada, with the international transition on the way, Bing’s numbers will be doing quite well going forward. Of course they still have a search partnership with Facebook and Windows Phone 7 sales to look forward to as well.

  • Yahoo Completes Bing Transition for Organic Results (in US and Canada)

    Last week, Yahoo announced that it had begun transitioning Bing results into Yahoo results – a product of the Search Alliance between Yahoo and Microsoft. Now, the companies have announced that the transition of organic results in the U.S. and Canada is complete.

    This applies to web, image, and video search on Yahoo for both the desktop and mobile experiences of Yahoo Search.

    "With this week’s milestone behind us, Yahoo! will continue to drive technology innovation in the search experience to bring more value to users and advertisers alike," says Yahoo SVP of Search Products, Shashi Seth. "We are focused on creating rich, immersive experiences that foster serendipitous discovery for people across the Yahoo! network.  As we shared last week, we are also working hard on finalizing our revenue model for the Yahoo! Search BOSS program going forward, and will be offering other search-related tools for publishers in the months to come."

    "We continue to work hard on the migration to adCenter, and are optimistic about completing this phase later this fall," says Microsoft’s SVP of Online Services, Satya Nadella. "As we have said all along, our primary goal is to provide advertisers with a quality transition experience in 2010, while being mindful of the holiday season."

    Both companies have indicated that the transition has gone smoothly, with Yahoo praising the speed at which the teams were able to get it done.

    So, what are your thoughts on Yahoo’s new search results? If you were a Yahoo user before, now you’re choosing between Yahoo’s and Bing’s user interface.

  • Yahoo: BOSS in, SearchMonkey Out

    Yahoo and Microsoft announced the beginning of the transition of organic search results today, but since the original announcement of the deal, it has been unclear what would happen to the Yahoo Search BOSS and SearchMonkey tools. That is because Yahoo had yet to make up its mind.

    Yahoo’s mind has now been made up. BOSS will carry on, and SearchMonkey won’t.

    "In the not too distant future, BOSS will provide web and image search results from Microsoft along with other search-related services and content from Yahoo!, such as news," says Neal Sample, VP of Social, Open, & Publishing Platforms at Yahoo. "In the next 30 days, we will announce the specific details about how BOSS will evolve. We are exploring a potential fee-based structure as well as ad-revenue models that will enable BOSS developers to monetize their offerings. When we roll out these changes, BOSS will no longer be a free service to developers."

    Yahoo Search BOSS

    SearchMonkey will shut down on October 1. That oges for the tool, the gallery, and the app preferences. "Yahoo! Search is continuing to shift from a model where developers build lightweight apps to install on Yahoo! to one where publishers enhance their own site markup to produce similar results," says Sample. "Yahoo! Search results pages will continue to show enhanced result templates from websites’ page markup and structured data feeds along with Microsoft’s organic listings."

    SearchMonkey closing

    Sample also provides updates on various other Yahoo Developer tools here. He discusses the future of YQL, Site Explorer, Maps, Geo, and Local APIs, and MyBlogLog.

  • Bing Finally Comes to Yahoo

    Yahoo users (in the U.S. and Canada) will start seeing Bing results for organic searches this week. Yahoo and Microsoft announced that the transition is starting, and that the paid search transition is in the middle of testing.

    "Later this week, we will begin the work of transitioning the back-end technology for Yahoo! Search over to the Bing platform," says Yahoo. "This is an important step toward our goal of improving the overall relevance of Yahoo! organic search results and attracting a larger audience to Yahoo! Search, to ultimately put your ads in front of more potential customers."

    "Soon, you’ll be able to access a transition portal from within your Yahoo! Search Marketing account," the company adds. "This portal will walk you through the simple step-by-step process of creating a Microsoft Advertising adCenter account and importing your campaigns, or linking an existing adCenter account that you may already have."

    The portal is currently being tested with a limited number of accounts. Users will be emailed when it’s available.

    Yahoo still intends to have the transition in place before the holiday season, but may elect to wait until 2011 if they feel like that would improve the user experience.

    "Once this organic transition is complete, Bing will power 5.2 billion monthly searches… that’s 31.6% of the search market share in the U.S. (290 million monthly searches and 8.6% share in Canada)," says Microsoft’s Tina Kelleher, referring to comScore data (more on that here).

  • Yahoo’s Organic Results Will Be Bing-Powered By Late August

    Yahoo and Microsoft have provided an update on advertisers’ transition to adCenter as the Search Alliance gets underway.

    Yahoo advertisers will soon either have to create a new adCenter account or link their Yahoo account to an existing adCenter account. Later this month, Yahoo advertisers will see an "adCenter" tab in their Yahoo Search Marketing account. This will take advertisers to the beginning of the account transition process where they’ll be walked through the steps.

    "Once you create your adCenter account, it will be active and your ads will be eligible to serve on Bing right away," Yahoo says. "As a result, you’ll be managing both your new adCenter account and your existing Yahoo! Search Marketing account in parallel until ad serving for Yahoo! traffic transitions to adCenter, so plan to budget accordingly."

    Advertisers will need to download Silverlight to look at the differences between their Yahoo and adCenter accounts.

    As far as organic search results, Yahoo says Bing will start powering Yahoo results in late August. Yahoo will email a confirmation to advertisers once the adCenter tab becomes available and once the organic search transition is complete.

  • Yahoo Goes Google Instead of Bing in Japan

    Yahoo Japan is turning to Google to power its paid and organic search engine listings. This comes as something of a surprise as Yahoo has a huge deal in place with Bing that is just getting started, but Yahoo doesn’t actually own the majority of Yahoo Japan, so that version of Yahoo gets to do its own thing.

    According to Kara Swisher at Boomtown who broke the news, Yahoo only holds a 35% stake in Yahoo Japan, while SoftBankCorp, a Japanese ISP and cell phone provider controls 40%. Yahoo has made the following statement on the matter:

    Yahoo! Japan announced that it has chosen to implement Google as its backend algorithmic search engine and paid search infrastructure. Yahoo! Japan made this decision as an independent and separate publicly traded company, in which Yahoo! holds a 35% equity interest. We amended our agreement with Yahoo! Japan as a result of this decision, and we do not anticipate that this amendment will have a material financial impact on our revenues. We will provide support, as required by our agreement, for the search experience Yahoo! Japan has chosen for its business, and we will continue to partner closely with Yahoo! Japan in other areas including mail, messenger, mobile, our content properties and more.

    This decision by Yahoo! Japan does not impact the global rollout and implementation of the Yahoo! search alliance with Microsoft, except in the Japanese market. We remain confident in our transition plans for the search alliance, are driving innovation in the user experience around search on the Yahoo! network, and continue to be committed to our alliance with Microsoft.

    Last week, Yahoo announced that it has begun testing organic and paid search listings from Microsoft, with up to 25% of its U.S. search traffic seeing Bing and adCenter results.

    Yahoo will be integrating Microsoft’s mobile organic and paid listings in the U.S. and Canada in the coming months. The company anticipates that U.S. and Canada organic listings in both the desktop and mobile versions of its search will be fully powered by Microsoft as early as August or September.

  • Yahoo Now Including Bing Results – Tips for Optimizing

    Yahoo has begun testing organic and paid search listings from Microsoft. Up to 25% of its search traffic in the U.S. may see organic listings from Microsoft, and up to 3.5% may see paid listings from Microsoft adCenter. I guess you could say that the early stages of the Search Alliance’s transition have begun.

    Will you place more emphasis on Bing optimization as it integrates with Yahoo Search?     Let us know.

    "The primary change for these tests is that the listings are coming from Microsoft," says Yahoo’s VP of Search Product Operations, Kartik Ramakrishnan. "However, the overall page should look the same as the Yahoo! Search you’re used to – with rich content and unique tools and features from Yahoo!. If you happen to fall into our tests, you might also notice some differences in how we’re displaying select search results due to a variety of product configurations we are testing."

    Yahoo provides the following example, in which the Microsoft-powered parts are represented by the boxes:

    Yahoo Starts including Microsoft search results - paid and organic

    As far as SEO is concerned, the Yahoo Search Marketing Team provides the following tips for organic search:

    1. Compare your organic search rankings on Yahoo! Search and Bing for the keywords that work best for you.
    2. Decide if you’d like to modify your paid search campaigns to compensate for any changes in organic referrals that you anticipate.
    3. Review the Bing webmaster tools and optimize your website for the Microsoft platform crawler, as Bing listings will be displayed for approximately 30% of search queries after this change, according to comScore.

    Microsoft’s Satya Nadella also says that "now is a good time for you to review your crawl policies in your robots.txt and ensure that you have identical polices for the msnbot/Bingbot and Yahoo’s bots. Just to note, you should not see an increase in bingbot traffic as a result of the transition."

    The Bingbot is designed to crawl non-optimized sties more easily. The new Bingbot will replace the existing msnbot in October. More on this here.

    Also note that the new Bing Webmaster Tools experience is live. This has been completely redone with a  bunch of new features (and more features to come). Bing Webmaster Tools Senior Product Manager Anthony M. Garcia summarizes:

    The redesigned Bing Webmaster Tools provide you a simplified, more intuitive experience focused on three key areas: crawl, index and traffic. New features, such as Index Explorer and Submit URLs, provide a more comprehensive view as well as better control over how Bing crawls and indexes your sites. Index Explorer gives you unprecedented access to browse through the Bing index in order to verify which of your directories and pages have been included. Submit URLs gives you the ability to signal which URLs Bing should add to the index. Other new features include: Crawl Issues to view details on redirects, malware, and exclusions encountered while crawling sites; and Block URLs to prevent specific URLs from appearing in Bing search engine results pages. In addition, the new tools take advantage of Microsoft Silverlight 4 to deliver rich charting functionality that will help you quickly analyze up to six months of crawling, indexing, and traffic data. That means more transparency and more control to help you make decisions, which optimize your sites for Bing.

    WebProNews spoke with Janet Driscoll Miller of Search Mojo out at SMX a while back. She had presented on the topic of Bing SEO vs. Organic SEO. As she notes, some businesses actually see better results from Bing than they do from Google, and when Yahoo starts fully using Bing for search, Bing’s share of the search market is going to grow dramatically (it also powers search in Facebook, let’s not forget).

    Yahoo will be integrating Microsoft’s mobile organic and paid listings in the U.S. and Canada in the coming months. The company anticipates that U.S. and Canada organic listings in both the desktop and mobile versions of its search will be fully powered by Microsoft as early as August or September. This of course depends on how the testing goes.

    Yahoo and Microsoft have created new joint editorial guidelines for advertisers that will become effective in early August. These can be found here.

    As we’ve discussed, Bing optimization is about to get more important, and now the time has come to really look at your Bing strategy if you’ve not already been doing so.

    Are you prepared for the transition?     Comment here.

  • Bing’s New Webmaster Tools Are Here

    At SMX Advanced last month, Microsoft announced that Bing would redesign its Webmaster Tools this summer. The new version is now available.

    Bing Webmaster Tools Senior Product Manager Anthony M. Garcia summarizes the changes:

    The redesigned Bing Webmaster Tools provide you a simplified, more intuitive experience focused on three key areas: crawl, index and traffic. New features, such as Index Explorer and Submit URLs, provide a more comprehensive view as well as better control over how Bing crawls and indexes your sites. Index Explorer gives you unprecedented access to browse through the Bing index in order to verify which of your directories and pages have been included. Submit URLs gives you the ability to signal which URLs Bing should add to the index. Other new features include: Crawl Issues to view details on redirects, malware, and exclusions encountered while crawling sites; and Block URLs to prevent specific URLs from appearing in Bing search engine results pages. In addition, the new tools take advantage of Microsoft Silverlight 4 to deliver rich charting functionality that will help you quickly analyze up to six months of crawling, indexing, and traffic data. That means more transparency and more control to help you make decisions, which optimize your sites for Bing.

    WebProNews also spoke with Bing’s Eric Gilmore about the changes at SMX Advanced:

    Users of Bing Webmaster Tools will find their accounts have been automatically upgraded with the new features. The company says it intends to release many more features in the coming months.

    The new Bing Webmaster Tools comes just as Yahoo has begun testing Microsoft-powered results in its own search results. Bing’s tools stand to become more important to SEO as Microsoft takes over Yahoo, who expects to show all Microsoft-powered results in the U.S. and Canada by August or September.

  • Yahoo/Microsoft Search Alliance in Cartoon Form

    Microsoft and Yahoo have released a new video illustrating how the two companies intend to create a "powerful new choice in search" with their Search Alliance, due to begin making its way to customers before the end of the year.

    There is not much in the way of news about the alliance to come from the video, but it does put its goal into a simple, easy-to-understand 2 minutes without going into all of the specifics.

    On the site for the Search Alliance, Microsoft and Yahoo say they still plan to launch the transition (at least in the U.S.) before the holidays season, but they also say they may wait until 2011 if they decide that it will be more effective.

    Read here for some previous information nuggets about the Search Alliance from the two companies.

  • Microsoft: Ad Rank on Yahoo and Bing Will Be the Same

    Microsoft has posted some FAQ’s and their respective answers in an update on its Search Alliance with Yahoo. There’s not a ton of new information, but, there are no doubt plenty of questions surrounding the transition, scheduled to get underway in time for the holidays.

    Microsoft and Yahoo Search Alliance - Before HolidaysOne question Microsoft took on was that of ad positioning between the two search engines. "Your ad rank on Yahoo! and Bing search engine results pages will be the same," says Microsoft’s Carolyn Miller. "Similar to Yahoo! Search Marketing, adCenter determines ad rank based on several factors including the amount you bid, your ad’s relevance, and your ad’s click-through rate."

    "As a result of each company continuing to own its own consumer search experience, there may be variances in the number of ads that are displayed in each location on the page. Bing could display three ads at the top of the page and two on the right-hand side, whereas Yahoo! might display two ads at the top of the page and three on the right-hand side for the same search term."

    You can see answers to other questions around timing, preparation, and account history here. Microsoft also has the Transition Center up to provide further updates, and advertisers will also receive significant updates via email.

    Yahoo has issued a couple of its own updates in recent weeks.

  • Yahoo Updates Advertisers on Microsoft Transition

    Yahoo has provided an update on the planned search alliance with Microsoft due out later this year. The company says the goal is still to have the transition in the U.S. and Canada complete before the start of the 2010 holiday season.

    Yahoo says that in late summer, it will offer a window of several weeks in which advertisers can choose a time to initiate and complete their own transition.

    Microsoft and Yahoo Search Alliance - Before Holidays"Fact is, it isn’t necessary to open a new adCenter account right now," Yahoo says. If you don’t already have an adCenter account, you will be able to move your Yahoo! account over in a few months when the account transition tool becomes available, and doing it this way can retain many of your account settings and structure."

    "However, we realize that some advertisers may want to start becoming familiar with the adCenter platform before account transitions begin; and if that’s the case, you’re free to open an adCenter account at any time—just continue to manage your Yahoo! account as usual, as you’ll continue to receive Yahoo! network traffic, until and during the transition period," the company adds.

    There wasn’t a lot in the way of news in the update, but the company did mention a couple things that are important to remember:

    – For now, you still need your Yahoo account, so that you can continue to receive Yahoo traffic until the transition is complete.

    – Any remaining balance in your Yahoo account can be transferred to a Microsoft adCenter account.

    Yahoo says again that it will provide more specifics on the actual transition timing over the next few months. Remember Yahoo has a Transition Center that you can check out every once in a while for updates.

  • Yahoo Answers Questions About Microsoft Integration

    Last week, Yahoo posted an update about the search alliance with Microsoft, indicating that it would "protect the holiday period," "ensure a quality transition," and "provide a window-of-time." Advertisers were still left with questions, however, and Yahoo has addressed some of them today.

    One questioned was whether or not adCenter accepts PayPal payments, and the answer is yes. Another one was about the use of liquor keywords that are currently used on Yahoo, and if they will still work with Microsoft, as their current policy does not allow them.

    Microsoft and Yahoo Search Alliance - Before Holidays"After the transition, Yahoo! will have the ability to continue to display some ads that Microsoft does not currently display on its own sites (e.g., adult ads), and vice versa," answers Yahoo’s Jeff Hecox. "However, no specific decision has been announced regarding liquor-related keywords."

    Someone asked about whether there will still be two platforms within adCenter. "All Sponsored Search advertisers will use the adCenter platform for their paid search campaigns following their transition, and the Yahoo! Sponsored Search system will be decommissioned," explains Hecox. "Once Yahoo! Sponsored Search advertisers are transitioned to Microsoft’s search platforms, we anticipate that advertisers will be provided with distribution controls that will allow them to select traffic from the combined marketplace of Bing and Yahoo!, or from the full affiliate network. However, advertisers will not be permitted to select traffic only from Bing or only from Yahoo! Search."

    Someone asked about singular/plural keywords, as Yahoo views them as the same but Microsoft doesn’t. Yahoo says the companies will review discrepancies and make modifications as necessary.

    A few other pieces of information from Yahoo’s answers include:

    – The companies have not yet determined whether Flash-driven and video capture pages will be allowed.

    – Advertisers will be able to select traffic from the combined marketplace of Bing and Yahoo!, or from the full affiliate network, but they won’t be able to select traffic only from Bing or only from Yahoo! Search, nor will reporting break out traffic volume from Bing and Yahoo! individually.

    – There are differences in features between Microsoft’s and Yahoo’s products, and Yahoo says they can’t guarantee that all Yahoo features will be matched in Microsoft’s. This was in response to a question about tracking URLs.

    – The companies are reviewing the current reporting capabilities offered by each to determine which reports and data will be offered to advertisers

    While Yahoo has addressed several questions, there are no doubt plenty more that remain unanswered.