Yahoo, the number two Internet search engine, currently leads in mobile web destinations due to an aggressive play to capitalize on the still emerging mobile search and advertising space. Although the market has yet to take a defined shape, visiongain maintains Yahoo’s moves are not too early. Google, Microsoft, AOL, and other players are all jockeying to be first to pocket profits from the most lucrative market to arise since Internet search and shopping. Advertisers will spend $1.8 billion on mobile media in 2007, which visiongain predicts will rise to $17.5 billion by 2012. In this report, visiongain explores Yahoo’s strategy in mobile in the medium-term future, and discusses the significant opportunities and threats that the company poses to current industry players.

How will Yahoo affect your operations? Should you be working with the company to leverage its expertise in mobile search and advertising, or would you be better off working with one of its competitors instead?

Is Yahoo likely to launch a VoIP phone leveraging current partner eBay's Skype or an enhanced version of its own Yahoo! Voice? 3 very recently became the first operator to offer a mass market device which is tailor-made for free calling over the internet from a mobile. Now, all of Skype's 246 million registered users can be reached for free with the 3 Skypephone. Will Yahoo produce a similar device, or will it enter this deal in a very big way considering Yahoo already has partnered with 3 to provide Yahoo! Go for Mobile 2.0 to 3 Group customers in the UK, Italy, Ireland, Sweden, and Denmark, with other 3 Group markets expected to follow by year end? This report addresses bleeding edge issues Yahoo and the industry face, providing insightful analysis on deals, market plays, and future mergers yet to be explored in other studies.

This report answers key questions, such as:

• What are Yahoo’s strategic visions and future plans in mobile?
  
  
• How will Yahoo’s model perform in the mobile landscape?
  
  
• What are Yahoo’s current activities in this space?
  
  
• What strategies and opportunities are open to Yahoo in mobile?
  
  
• Will Yahoo launch a VoIP or cellular phone?
  
  
• Will Google’s text ads be overshadowed by Yahoo’s mobile display ads?

1. Executive Summary

Table 1.1. Yahoo Revenues 2006-2007

2. Introduction

2.1. Yahoo - A Brief History

Image 2.1: Yahoo Homepage

Image 2.2: Yahoo Corporate Building

2.2. Yahoo - The Wild Card in Internet Plays

Chart 2.1: Customer Satisfaction Scores - Yahoo vs. Google

Table 2.1: Yahoo Repositioning to Web 2.0

2.3. Yahoo The Sleeper

Table 2.2: Yahoo's Hidden Wins

2.4. Yahoo Goes Mobile

2.4.1. Mobile Advertising Becomes Key

2.4.2. Yahoo's VoIP Ambitions

2.4.3. Handsets Become Key Focus Too

Table 2.3: Recent Yahoo Handset Manufacturer Deals

Table 2.4: Recent Yahoo Carrier Deals

Chart 2.2: Mobile Web Destination Rankings, Q2 2007

2.4.4. Yahoo Mail for Mobile

2.4.4.1. Yahoo Mail Speeds Convergence

2.4.4.2. Yahoo Mail Features and Functionality

2.4.4.3. Yahoo Mail Co-Branded and Wireless Versions

2.4.5. Yahoo's Mobile Service Offerings

2.4.5.1. Yahoo's Ventures Into the Americas

2.4.5.2. Yahoo's Ventures Into Asia

2.4.5.2.1. The Free Speech Roadblock

2.4.5.3. Yahoo's Ventures Into Europe

2.6. Focus of this report

3. Yahoo Current Model and Services

3.1. Yahoo At a Glance

Chart 3.1: Yahoo New Mobile users added per month forecast 2007-2013

3.1.1. Yahoo Struggles

3.2. Yahoo's Business Model

Table 3.1: Yahoo Marketing Services Revenues for Q3 2007

3.3. Current Business Strategy

3.3.1. The Push for Global Mobile Advertising

3.4. Core Business - Internet Search

3.4.1. The Promise of Panama

3.4.2. Yahoo's Search Marketing Commercial API Programme

3.5. Other Business Areas

3.5.1. Yahoo Content Partnerships

3.5.2. Yahoo Commerce Services

Chart 3.2: Click-thrus to retail sites

3.5.3. Yahoo! Photos

Chart 3.3: Worldwide Members of Mobile Social Communities forecast 2007-2012

3.5.3.1. Flickr Requires Member ID

3.5.3.2. Flickr Features

3.5.3.3. Flickr in Mobile

3.5.2. Yahoo! News

3.5.3. Yahoo! Email

3.5.4. Open Content Alliance

Figure 3.1: Yahoo SWOT Analysis

3.6. Financial Analysis

Chart 3.4: US Unique Visitors to Site

Chart 3.5: Yahoo Revenue 2005-2007

4. Yahoo Goes Mobile

4.1. Why Yahoo Went Mobile

4.1.1. Mobile Industry takes shape

4.1.2. Combo Threat Emerges

4.2. Carrier/Operator Deals

4.3. Handset Manufacturer Deals

4.4. Yahoo Mobile Summary

5. Yahoo's Mobile Services

Chart 5.1: Yahoo Mobile Services User Forecast 2007-2012

5.1. Yahoo oneSearch

5.2. Yahoo Mobile Advertising Services

5.2.1. Mobile Advertising Network

5.2.2. Mobile Content Engine

5.2.3. Mobile Media Directory

5.2.4. Mobile Site Submit

5.2.5. Operator Advertising Solutions

5.3. Yahoo Go

5.4. Yahoo Mobile Web

5.5. Operator Search

6. The Competitive Environment

6.1. Yahoo's Main Rivals

6.1.1. Google In Mobile

6.1.1.1. Google In Wireless

6.1.1.2. Google vs. Yahoo

6.1.1.3. Google and eBay draw up battle lines

Chart 6.1: 2007 Internet Search Market Share

6.1.1.4. eBay and Yahoo get closer

6.1.2. Microsoft

6.1.2.1. Microsoft in Mobile

6.1.2.2. Microsoft in Mobile Content

6.1.2.3. Microsoft Mobile Carrier Deals

6.1.2.4. Microsoft Handset Manufacturer Deals

Image 6.1: Microsoft Mobile Devices

6.1.3. Ask.com

6.1.4. AOL Time Warner

6.2. Yahoo's Niche Rivals

7. Yahoo Future Strategies for Mobile and Wireless

7.1. Yahoo Search Marker Share Forecast

Chart 7.1: Yahoo Mobile Market Share 2007

Chart 7.2: Yahoo Mobile Market Share Forecast 2012

7.2. Yahoo's Future Play

7.2.1. Converging Elements

7.2.2. Redefining Search

7.2.3. From Search to Social

8. Recommendations

8.1. For Yahoo

8.2. For Carriers

8.3. For Advertisers

8.4. For Handset Manufacturers