The Marketing Solutions Business segment provides a diverse, high quality selection of essential media-related services such as Yahoo! News with the aim of maximizing Yahoo! JAPAN’s daily usage metrics. Based on those metrics, the segment generates revenue via advertising placements. Smartphones accounted for more than half of the Yahoo Japan Group’s total advertising-related revenue for the first time in fiscal 2016, testifying to the success of our product development and marketing efforts in recent years. Moving forward, we expect to achieve higher profitability by maintaining a sharp focus on enhancing our media-related services with an eye to boosting user numbers, usage frequency, and usage time, while at the same time making functional improvements to advertising products incorporating distribution systems that leverage accumulated user specific behavioral data.
Yahoo! JAPAN top page and Yahoo! News are principal services provided in our media services. Display advertising and paid search advertising are offered in our advertising services.
Yahoo! Display Ad Network (YDN) and Brand Panel are major products in our display advertising product lineup.
YDN is displayed in Yahoo! JAPAN’s webpages as well as our partner sites. Using Yahoo! JAPAN’s overwhelming reach, users are narrowed down based on their attributes and locations. In addition, using the targeting function based on users’ behavioral history, advertisements are displayed to users that would have interest in the advertisers’ products and services.
Revenue from YDN is recognized when a user clicks the advertisement.
Brand Panel, displayed on Yahoo! JAPAN top page, targets a wide range of Internet users. It excels in visibitity and expression, and can be used to increase the recognition of products and services for branding purposes. Brand Panel’s revenues are recognized by displaying advertisements with guarantees on ad placements, number of exposures and price.
Paid search advertising,
Sponsored Search® displays advertisements related to searched key words in the search result pages. The most optimal advertisements are displayed to the Internet users who are in quest of information on products and services. The advertisers can specify exposure locations and times, and can effectively advertise towards users with high purchasing appetite. Advertising revenue is calculated on a per-click basis.
The Consumer Business segment primarily comprises e-commerce related services, membership services, information listing services, and financial and payment-related services. Owing largely to contributions from consolidated subsidiaries ASKUL Corporation and Ikyu Corporation, the Consumer Business segment generates the largest amount of revenue among our three business segments. In our flagship Yahoo! Shopping service, from October 2013 we introduced a new e-commerce strategy for increasing advertising related revenue by eliminating monthly store tenant fees and transaction based system-use fees. Enhanced privileges newly offered during the period to specific user groups such as Yahoo! Premium members supported strong growth in the Yahoo Japan Group’s total domestic e-commerce transaction value, which, after adding on the online B2B revenue generated by ASKUL on a stand-alone basis, rose to ¥1.85 trillion for fiscal 2016. Moving forward, we aim to become No. 1 in total transaction value in the rapidly expanding Japanese e-commerce market, where YAHUOKU! already boasts an overwhelmingly dominant share of the online auction market.
Financial and payment-related services chiefly comprise the credit card, e-money, and foreign exchange margin trading businesses. Sharing significant synergies with our e-commerce related business, the credit card business is expected to grow in tandem with total domestic e-commerce transaction value. Looking ahead, we intend to expand these businesses by carrying out new-member acquisition drives and promotional campaigns to boost usage.
The Consumer Business segment is primarily comprised of e-commerce related services, such as YAHUOKU!, Yahoo! Shopping, and Yahoo! Travel; membership services, such as Yahoo! Premium and Yahoo! BB; and financial and payment-related services, such as Yahoo! Wallet and Yahoo! Card.
YAHUOKU! is an Internet auction service. Revenue of YAHUOKU! is primarily derived from commissions on successful bids. YAHUOKU! has recorded stable growth by responding to users’ needs to “buy low and sell high”. It now boasts the largest user base in Japan’s online auction market. In February 2017, we introduced our FURIMA mode, a fixed-price buy-it-now format following requests from users to “buy and sell immediately”. With additional functional improvements and measures to increase new users, we aim to expand our transaction value in our auction services.
Yahoo! Shopping in an online shopping mall. From October 2013, we introduced a new e-commerce strategy and eliminated monthly store tenant fees and transaction based system-use fees. Now, revenue of Yahoo! Shopping is derived from advertisements placed by tenants of Yahoo! Shopping. Leveraging the increase in sellers and items listed due to the waiving of monthly store tenant fees, etc., we will strive to increase buyers and transaction value, and to expand advertising revenue. Moreover, we will accelerate the growth of transaction value through increased convenience achieved by functional improvements to smartphone apps and sales promotional activities such as privileges provided to members of Yahoo! Premium, SoftBank Group and Yahoo! Card.
By registering to our paid membership service, Yahoo! Premium, users can list their items to YAHUOKU! and Yahoo! Shopping. Moreover, Yahoo! Premium members receive added privileges such as additional T Points for purchases made in Yahoo! Shopping and LOHACO, and benefits in the use of digital contents such as games, video and e-books.
From June 2017, SoftBank smartphone users are awarded with Yahoo! Premium privileges for free. Through such measures, the number of Yahoo! Premium members is steadily increasing.
Financial and Payment Services
Financial and payment-related services are comprised chiefly of the credit card, foreign exchange margin trading and payment-related businesses.
n April 2015, we began offering our Yahoo! JAPAN Card. Along with the growth of our e-commerce related services, we promote the use of Yahoo Japan Group payment-related services, such as Yahoo! Wallet, Yahoo! JAPAN Card and The Japan Net Bank, Limited. Looking forward, we aim to expand revenue from payment fees through user acquisition measures and initiatives designed to promote usage.
Yahoo! Wallet’s new payment function, Yahoo! Money launched in May 2016, is e-money that can be used to pay for purchases made on YAHUOKU!, Yahoo! Shopping, and LOHACO.