CS155b E Commerce Lecture 14 March 4 2003 Portals Useful Web Based Services The average user sees the Internet as an easy fast way to access and search for useful information Web browsers created a standard method for providing information services Several websites became known early on for providing these useful services Blue Mountain for online greeting cards Hotmail for web based e mail MapQuest for driving directions AltaVista for searching Note These are only examples and may not have been your favorites Making Sense of the Internet Users often start at the same websites to find services search engines or directories Why not provide direct quick links to partner companies offering services Cookies and user profiles can be used to personalize web pages WWW based services can be accessed from any Internet terminal anywhere Users can just sign in to identify themselves Solution Provide a simple customized gateway for users to access the services they want The Development of Portals Popular websites began to add directory search or links sections to connect people to services AOL builds links into its welcome page Netscape puts links near its browser download pages Search engines provide customized searches for news movie show times etc New computers come with pre loaded bookmarks and links Companies began to partner with others that provided useful services Portals Today Internet directories grew into Internet brand names through partnerships with and acquisition and development of Internet service websites Archetype Yahoo Internet access companies either partner with a large Internet portal e g Yahoo or provide a network of comprehensive services on their own e g AOL MSN The goal Users get both Internet access and information access with ease An Internet Portal Full Name Yahoo Inc Employees 3 587 worldwide as of 10 9 2002 Stock Price NASDAQ YHOO 20 85 at close 2 28 2003 52 week range 19 98 to 20 95 Earnings Per Share 0 186 A global Internet communications commerce and media company The only place anyone needs to go to find anything communicate with anyone or buy anything Yahoo Overview Founded by David Filo and Jerry Yang two Stanford Ph D students in 1994 Started as Jerry s Guide to the WWW First million day hit in Fall 1994 from over 100 000 unique users Incorporated in 1995 and funded by Sequoia Capital in 4 95 with an initial investment of nearly 2 million Yahoo Overview continued Second round of funding in Fall 1995 from Reuters Ltd and Softbank IPO 4 12 1996 at 1 08 share adjusted for 3 stock splits 49 employees Today Yahoo serves over 237 million individuals each month Yahoo claims to be the No 1 Internet brand globally Yahoo Inc Stock Quotes YHOO Source Quicken com 2 28 2003 S Stock Split Yahoo Quarterly Revenues Source SEC Filings and Yahoo Website Financial Summary 350 300 200 150 100 50 0 2Q 96 4Q 96 2Q 97 4Q 97 2Q 98 4Q 98 2Q 99 4Q 99 2Q 00 4Q 00 2Q 01 4Q 01 2Q 02 4Q 02 Millions 250 Main Sources of Revenue Source Yahoo Investors FAQ Advertising Banner advertising Sponsorships and Key Words Business Premium Services Extra mail storage for Yahoo Mail customers Yahoo Bill Pay Yahoo Auctions Yahoo Photos Corporate Yahoo services Global Expansion Launches of Yahoo global sites 1995 Yahoo is incorporated 1996 Japan France Germany UK 1997 Singapore Korea Denmark Norway Sweden 1998 Italy China Spain 1999 Taiwan Hong Kong Brazil Mexico 2000 India Argentina Canada Feature Expansion 1995 Launches as web directory and search engine starts serving ads 1996 Yahooligans children s website 1997 Chat Mail Travel and Sports 1998 Specialized Sites Computers Movies Games Small Business Clubs Portal Consumer Services Auctions Calendar Employment Real Estate Shopping Feature Expansion continued 1999 Specialized Sites Health Entertainment Pets Radio Services Messenger Greetings Companion Browser plug in Briefcase Internet storage Corporate Yahoo 2000 01 Invites Groups Photos FinanceVision PayDirect Education Shopping Network and Shopping Bargains 2002 Primarily improvements in existing features e g maps and small business site Important Partnerships Web Searching Searches on Yahoo first go through its own human maintained directory and then go to Google Adds Google s index to Yahoo Internet Services Provides co branded DSL service with SBC communications Yahoo already partners with ISPs to provide start pages and with computer manufacturers to have Yahoo shortcuts and browser plug ins installed on machines HotJobs Acquired by Yahoo in 12 2001 Online recruitment website for posting resumes and finding jobs competitor to Monster com Evolution of Business Model Pre portal Speculation about online services pay per click and other fee models Original Yahoo Purely advertiser supported focused on content for individual users Current Advertiser supported comprehensive services for individual users and tools customized portals and services for businesses Next The Yahoo Portal Started as the bookmarks of Filo and Yang who wanted a single place to find useful web sites Launched commercially as an advertiser supported comprehensive hand built directory Now it is A comprehensive branded network of consumer services content delivery commerce shopping auctions bill paying etc communications mail messenger photos clubs etc internet access through SBC partnership Provider of online business and enterprise services and tools Corporate Yahoo Portal Builder AOL Netscape AOL was founded in 1985 Flagship AOL the ISP has 35 million users Now AOL Time Warner attempts to be the leading Internet access company offering not only a connection but also content News video audio from Time Warner Broadband access through Time Warner cable Browser mail and instant messaging software through Netscape AIM and ICQ Music through Nullsoft Winamp Shoutcast Information services through Moviefone and MapQuest Marketing spin Sign up with AOL get easy access to all the information and content you want through easyto use software The MSN Portal Started by Microsoft as an alternative to AOL Now best known as a network of branded consumer services Hotmail classmates com net Messenger Encarta online Slate Customized services are accessible by signing into an MSN Passport Microsoft s online user profile system Passport sign in is built into Windows XP Partnership with NBC premium media content MSNBC news and CNBC financial cable channels and websites including money management tools MSN s Internet access service has gone through