CREATION: Yahoo marketing to target corporations

<p>Faced with a softening online advertising marketing, Yahoo is </p><p>diversifying its marketing to target corporate customers. </p><p><BR><BR> </p><p>The drive to pump up revenue has led the Internet giant to launch Plan </p><p>C, a campaign to pull in business from large corporations. Yahoo has </p><p>offered to build corporate portals, conduct realtime conferences over </p><p>the Internet and other business-related services for companies. </p><p><BR><BR> </p><p>Despite strong growth, Yahoo has not been immune to the dotcom </p><p>downturn. </p><p><BR><BR> </p><p>It earlier warned that 2001 earnings would be lower than predicted. Like </p><p>many dotcoms, Yahoo's problems stem from its business model, which is </p><p>largely dependent on online advertising. </p><p><BR><BR> </p><p>With the dotcom casualty list mounting and marketing budgets being </p><p>slashed, Yahoo has seen its advertising revenue dry up. </p><p><BR><BR> </p><p>The company's plan B - to attract advertising from traditional companies </p><p>- didn't quite take shape. Even the portal's online mall, which lists a </p><p>growing number of merchants, has yet to pay off, prompting the latest </p><p>drive to target corporations, with the launch of a business-to-business </p><p>marketplace. </p><p><BR><BR> </p><p>Yahoo senior manager of international marketing, Gen Shibayama, told </p><p>CReATION on a recent visit to Hong Kong that the company was optimistic </p><p>the new business services would help it gain a share of the growing B2B </p><p>market. The Gartner Group has predicted that the B2B market would be </p><p>worth USdollars 7.3 trillion annually by 2004. </p><p><BR><BR> </p><p>"The (online advertising) situation in Asia is much better than the US. </p><p>We have already launched these campaigns for corporate users in Taiwan. </p><p>We also worked with Ming Pao in Hong Kong to help them with a live </p><p>webcast," said Mr Shibayama. </p><p><BR><BR> </p><p>"We don't foresee any consumer campaigns in the near future because our </p><p>target is more for corporate at this time." </p><p><BR><BR> </p><p>Yahoo is also beginning to charge a listing fee for its auction site and </p><p>is looking at other ways to earn revenue from its 55 million users. </p><p><BR><BR> </p><p>Although Yahoo is arguably the best known portal brand on the Web, its </p><p>strategy to target companies presents perils of its own. </p><p><BR><BR> </p><p>As Mr Shibayama acknowledged, the portal to business market has become </p><p>increasingly crowded, while spending on IT is expected to fall this </p><p>year. </p><p><BR><BR> </p><p>Targeting corporate users will also require Yahoo to extend its consumer </p><p>brand to entice corporate decision makers. </p><p><BR><BR> </p><p>He said Yahoo would make further advances into Asia, following its </p><p>acquisition of Kimo.com. </p><p><BR><BR> </p><p>NetValue data shows that Yahoo already operates the top Web properties </p><p>in three Asian markets. Its sites drew the most unique home Internet </p><p>users in Hong Kong, Singapore and Taiwan during December, while </p><p>Kimo.com, which Yahoo acquired in November, placed first in Taiwan, with </p><p>Yahoo in third. </p><p><BR><BR> </p><p>The acquisition of Kimo.com, according to Merrill Lynch US Internet </p><p>analyst Henry Blodget, was made to "bolster Yahoo's position in Taiwan", </p><p>and ultimately mainland China. </p><p><BR><BR> </p>