Yahoo!: Pricing Search Engine Advertising

Published 03 Jan 2006
Reference 5340
Topic Marketing
Industry Internet E-Commerce
Region Global
Summary

The case discusses Yahoo!'s marketing services and various types of advertising. The main focus is on search engine advertising, one of the most important revenue sources for Yahoo. The market, Yahoo's pricing strategies and challenges are described.

Teaching objectives

This case aims to introduce participants to several pricing and revenue management concepts: building a revenue model, customer segmentation, product design, bundling and pricing. One of the key emerging concepts is opportunity cost-based pricing. The case can also be used to discuss media rating measures (CPM vs. pay-per-click) and B2B pricing strategies, such as contracts and auctions.

Keywords
  • Advertising
  • Internet
  • Search engine
  • Pricing
  • Customer segmentation
  • Revenue model
  • Auction
  • Willingness to pay
  • AR2006
  • AR0506
  • RD0306