Here’s an In depth Analysis On the Business Model Of Yahoo

Updated on: Sep 22, 2021
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My name is Aditya Shastri and I have written this case study with the help of my students from IIDE's online digital marketing courses in India.

Practical assignments, case studies & simulations from Harvard Business Review helped the students from this course present this analysis.

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Looking for the business model of yahoo? Here’s an in-depth analysis of it.

Yahoo is one of the most well-known brands in the media and entertainment industries. It is a well-known online brand that bills itself as a democratic and unbiased search engine. Although Yahoo has fallen far behind Google and Facebook, it was once a contender for internet dominance.

In this case study, we will learn about Yahoo’s product, placement, promotion, and pricing strategy, as well as its SWOT Analysis.

Let us begin with a brief introduction to Yahoo before moving on to the main segment.


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About Yahoo

In January 1994, Jerry Yang and David Filo founded Yahoo, which is regarded as the first web search engine that assisted users in discovering everything on the Internet. It is a multinational technology corporation headquartered in California.

The web search engine offers digital content products, news, media, sports, and advertisements to its users all over the world. Despite fierce competition from Google, the company still attracts more than half a billion users each month in over 30 languages. It ranks third in terms of market share in the United States, trailing only Google.

As of October 2005, Yahoo was serving approximately 3.4 billion internet web page views worldwide. However, according to Alexa Internet and SimilarWeb, Yahoo domain websites continue to be among the most popular, ranking 12th in global engagement.

We now have a clear understanding of what Yahoo is. Let’s see the product offerings of Yahoo in the coming section. 

Yahoo Product Strategy

Yahoo offers a variety of products and services. These are easily accessible through their web portal. On the go, the portal provides news, sports, finance, and weather information. Yahoo Search, Yahoo Finance, Yahoo Mail, Yahoo Maps, and Yahoo Messenger are also available to these users. The following are some of the products and services that are part of its marketing mix product strategy:

  • Online messaging services, such as Yahoo Mail and Yahoo Messenger
  • Social networking services and products, such as Yahoo Buzz, My Web, Yahoo Personals, and Delicious
  • Yahoo Sports, Yahoo Finance, Yahoo Music, Yahoo Movies, Yahoo News, Yahoo Weather, Yahoo Games, and Yahoo Answers are all content provider offerings.
  • Instant messaging, blogging, email, information services, notifications, and OneSearch are all available on Yahoo Mobile.
  • Yahoo Shopping, Yahoo Autos, Yahoo Travel, and Yahoo Real Estate are all shopping services.
  • Tumblr, a microblogging and social networking website, and Flickr, a picture and video hosting website.
  • Yahoo Next, Yahoo BOSS, Yahoo Meme, Y! Connect, Yahoo Accessibility, Yahoo Axis, Yahoo SearchMonkey, and Geo Planet are all examples of Yahoo products.

These are the products offered by Yahoo. Let’s get to know about the pricing strategy of Yahoo. 

Pricing Strategy of Yahoo

Yahoo’s pricing strategy varies depending on the type of product or service it offers. Yahoo BOSS is a service that allows developers to create Yahoo-powered applications. This is a per-query pricing scheme, with rates ranging from $0.4 to $0.75 for 1000 BOSS queries. The cost is determined by the type of query. 

Yahoo Merchant Solution features a reasonable monthly rate of $ 39.95 for their e-commerce solutions beginning package, followed by a 1.5 percent gross sales additional monthly fee. Yahoo Web Hosting charges $3.75 per month for the basic plan, $5.99 per month for the advanced plan, and $8.99 per month for the premium plan.

Yahoo DomainKeys sells domain names for around $10 for five years, after which there is a $35 annual renewal fee.

 This elucidates Yahoo’s pricing strategy. Let’s take a look at the distribution strategy of Yahoo. 

Place Strategy of Yahoo

Users can access all of Yahoo’s products and services through the Yahoo Affiliate program. This aids online marketers in promoting its Hosting Services, Yahoo Mail, Yahoo Games, and Yahoo Merchant Solutions, as well as helping them create a high level of visibility for their brand, attracting more customers. 

Yahoo earns commissions when users sign up for their business services, such as Yahoo Merchant Solutions and Yahoo Web Hosting Plan, through this program.

This concludes the placing strategy of Yahoo. Now let’s tear it down and understand the promotion strategy of Yahoo. 

Promotion Strategy of Yahoo 

Yahoo uses a variety of strategies to attract businesses to its brand. Because it is a website, its promotional efforts are one-of-a-kind in the marketing mix. Yahoo has created several mobile apps that allow customers to access their email, news, sports, and other information by simply downloading the Yahoo app to their mobile device. 

Every month, Yahoo Studios broadcasts live videos and advertisements across the internet. Yahoo creates a platform for native advertising, allowing businesses to reach millions of people. They also provide custom branded content for viewers to watch live streaming of sports, markets, or news from the comfort of their own homes. Tumblr and Polyvore, both powered by Yahoo, are two platforms for their young to connect.

With this, the business model of Yahoo gets complete. Let’s finish it with a conclusion. 

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Yahoo has been one of the top online corporations since its inception. Even after Google’s ascension, Yahoo has maintained its place by providing great news to its readers daily. Yahoo will be one of the most popular Web portals in the world as a result of the dedication and hard work of its staff.

I hope you found this case study interesting. Do you want more? Please visit the IIDE website for more information. You can also take Karan Shah’s Free Digital Marketing Masterclass if you’re interested in learning more about digital marketing. 

Share your thoughts on this case study in the comments below. Thank you for reading, and if you liked it, please tell your friends about it.

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Aditya Shastri

Lead Trainer & Head of Learning & Development at IIDE

Leads the Learning & Development segment at IIDE. He is a Content Marketing Expert and has trained 6000+ students and working professionals on various topics of Digital Marketing. He has been a guest speaker at prominent colleges in India including IIMs......[Read full bio]


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