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------PACE UNIVERSITY------ New York City

------PACE UNIVERSITY------ New York City. Yahoo! Executive Summary.

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------PACE UNIVERSITY------ New York City

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  1. ------PACE UNIVERSITY------ New York City

  2. Yahoo! Executive Summary Fast Pace Advertising has developed the “Transformation” campaign: Yahoo! products transform an ordinary day into an extraordinary day. Our campaign builds a strong connection with teens who enjoy ads that are fun, silly and convey a convincing message. We have leveraged what Yahoo! already represents and taken it to the next level. The strength of the campaign is that it never loses focus of Yahoo!’s values and meets Yahoo!’s challenge of being fun, without being heavy-handed. The target audience is composed of teens 13-17 who feel their lives are ordinary, routine and often uncontrollable. Yahoo! has an advantage over its competitors because of the breadth of its features and the convenience of having them all in one place and we bring this to teens through the micro site “The Y Den.” We recommend a broad based media plan that reflects the diversity of our target audience’s media habits. Using our Sweet Spot Model we have developed promotions that target teens’ interests and give them reasons to keep coming back to Yahoo!, with promotions such as Yahoo! Extraordinary Buxx, Challenge to Find Y!, and Challenge the Ordinary Day. The $10 million budget is expected to reach 89% of the total teen market with a large portion of the budget dedicated to reach both genders via gender neutral vehicles. Table of Contents Executive Summary ...........2 What We Did to Prepare ...........3 The Sweet Spot Model ...........4 Industry Overview ...........5 S.W.O.T. Analysis ...........6 Product Recommendations ...........7 Target Market Analysis Overview ...........8 Psychographics ...........9 Teens and the Internet .........10 Creative Strategy .........11 Creative .........12 Print Ads .........13 Creative Ads & Copy-Test Results........14 TV Commercial .........15 Media Plan Overview .........16 Media Plan: Television. .........17 Media Plan: Internet .........18 Media Plan: Radio .........19 Media Plan: Magazine & Cinema .........20 Media Plan: Emerging Media .........21 Media Plan: “The Sweet Partner” .........22 The IMC/Buzz Programs .........23 Contests & Sweepstakes, .........24 Buzz and Promotions ...25-26 The Y Den .........27 Branded Entertainment Partnership.....28 IMC Buzz Marketing & Promotional Budget .........29 Media Allocation .........30 Flowchart .........31 Measurement Value Chain .........32

  3. Yahoo! What We Did To Prepare Acknowledgments Fast Pace would like to take an opportunity to thank Dr. Larry Chiagouris for his admirable dedication, constant mentoring, and inspiring trust in our team. Thank you Larry for your early mornings and late nights, for your experience, your guidance, and most of all your friendship. In addition we would like to extend our gratitude to the following individuals and organizations: Dr. Martin Topol Mr. Jeff Casper Ms. Ana Castillo The Pace University Staff And a special thanks to: Mr. Keith Reinhard, Chairman, DDB Worldwide for visiting and teaching us to first “Say it square then add flare” PRIMARY RESEARCH Surveyed over 150 teens Conducted focus groups Conducted one-on-one interviews Copy-tested creative material President: Siria J. Matos PR & Promotions: Maria Romano Financial Management: Ewelina Widomski Production: Igor Boltyshev, Amani Farhoud, Jahanara Siddiqui Creative: Weber Chou, Livan Grijalva, Nina Kenigsberg, Svetlana Voynova IMC Management: Alessandra Antenucci, Breanna Buzzell , Rebecca Novak Media: Mebrulin Francisco, Alexis Gardella, Tamika Joseph, Anthony Reinhart Research: Anna Dudik, Claudia Magic, Raymond McNeal, Bhoomi Shah Getty Images: 200168423-001/Photographers Choice/Getty Images 200146099-001/The Image Bank/Getty Images 200019977-001/The Image Bank/ Getty Images

  4. Yahoo! The Sweet Spot Model The Sweet Spot Model: Our Process for Great Communications Message Media Choices IMC/Buzz Programs SWEET SPOT Teens are as complicated to interpret as they are to understand, just ask their parents! Fast Pace Advertising has examined every component of who teens are and what teens want to arrive at the one specific characteristic that defines EVERY teen. It is something that we refer to as the “SWEET SPOT.” Our Sweet Spot Model is based on a foundation of extensive research and planning programs. We have studied the buying habits, attitudes, and preferences of teens across the country. By deriving several key insights, we have identified the key message that resonates with all teens. A comprehensive analysis of their media habits permitted us to discover the types of media that all teens share in common, regardless of their individual reading, listening or viewing habits. This knowledge enabled us to surround the teen audience with the chosen media, assuring a strong penetration of our message to almost every teen, no matter how different he or she may be. Finally, in order to expose teens to promotions, contests and viral programs that they will want to experience, we identified where they go, how they get there, and where they want to go .

  5. Yahoo! Industry & Company Overview The Internet, since its introduction, continues to become the wave of the future. The public relies on it and businesses have begun to use it as another medium to convey product messages. In fact, Internet media is the fastest growing advertising medium; 4.2% of advertising dollars are expected to be allocated to Internet media in 2005. Online spending is expected to reach 5.7% by 2008. Yahoo! is a major player among the world’s leading Internet media companies. Most of its revenue comes from advertisers who pay to have their products showcased on the Yahoo! website. Yahoo! offers a variety of products for its consumers: free e-mail accounts, an online radio, online chatting, PC to mobile services and a reliable search engine. Yahoo! consolidates its product offerings, all of which are tailored to fit each user’s demographic and geographic area. Each Yahoo! product can be integrated easily into another Yahoo! product. Yahoo! can be viewed by two different audiences: the advertisers and the visitors/registered users. The users take advantage of Yahoo!’s products while advertisers enjoy showcasing their products or services to more people. AOL has attempted to attract the teen audience through its new website, AOL Red, and has thrived through its popular instant messaging service Main Competitors GOOGLE is number one in search services and has seen immense popularity with the introduction of its e-mail service, G-mail MSN offers its customers increased storage space for its ever popular e-mail service and provides an instant messaging service

  6. Yahoo! S.W.O.T Analysis • One of the world’s leading Internet media companies • Offers numerous products under one umbrella • Is extremely popular and is one of the best known websites • Has the fastest download times among major websites • Currently stands at #1 in online gaming • Faces strong outside competition from AOL, MSN, and GOOGLE: • GOOGLE now has its own e-mail system • AOL has a teen micro site, AOL RED • MSN has a teen micro site, ThreeDegrees STRENGTHS THREATS OPPORTUNITIES • The main Yahoo website is not very • welcoming to teenagers: • too crowded with small print, therefore it is overwhelming • Known primarily as a search engine and • not for the other products and services offered • Has recently acquired MusicMatch • Has revamped its search engine, offering more • relevant information to searches • Bought Overture Services • Has acquired the travel engine FareChase

  7. Yahoo! Product Recommendations Messenger Mobile Mail Search Music * Games *We chose Yahoo! Games as the sixth product. Our research shows that online gaming is among the most frequented teen activities on the Internet. Additionally, Yahoo! is the leader of this market segment.

  8. Yahoo! Target Market Analysis Overview With 22.5 million 13-17 year olds in the United States, the teen market, in actuality, consists of several different markets that all fall under one umbrella. We understand that teens are not a homogenous group; they are not carbon copies of one another. Therefore, there is no ONE teen that represents the entire group, rather, there are multiple types of teens that differ greatly from each other. Our challenge is to find the common link among this group of individuals across the borders of age, gender, race, location, attitudes, lifestyles and buying behaviors. American teenagers take a keen interest in and rely on modern technology at school and in their daily lives. They express an interest in computers and cutting edge technology. These individuals are multi-taskers who crave independence, freedom and fun. The online environment allows teens to experience the most freedom and control. It is an area where they have the ability to view and interact with content on their own terms. This group values being in control of their lives and exhibits a strong desire for individuality in their self-expression.

  9. Yahoo! Target Market AnalysisPsychographics “This generation is a revolutionary consumer group, actively in control…” - Wenda Harris Millard, Chief Sales Officer, Yahoo! Teens are constantly being told what to do by their parents, teachers, elder siblings, and relatives. They feel as though they have no say in anything. Thus, they have come to embrace the things they do have power over: music, entertainment, clothes, and activities. From our primary research we have learned what teens crave the most, POWER and CONTROL over their lives. Most importantly, they crave the technology that allows them this level of control. Concurrent use of multiple media, also known as “multitasking,” is a practice that has been increasing at a considerable rate. Today’s teens frequently use two, three, or more media simultaneously; they engage in instant messaging while watching TV, chatting on the phone, listening to music, playing a video game, etc. Depending on the medium, teens report using multiple media most of the time.

  10. Yahoo! Target Market Analysis - Teens and the Internet The target market uses the Internet more than any other medium and believes that it is the most informative and offers the greatest control. • Teenagers have never known life without the Internet. It enables teens to express themselves through a different medium that gives them control like no other. • For this age group, time spent on the Internet surpasses the time • spent on traditional media • Currently, 22.5 million teens between 13-17 use the Internet • 49% of teens state that the Internet gives them the greatest control over other media • 37% of teens state that the Internet is the most informative medium • Teens are active users of the Internet and • prefer to find things out themselves • The Internet enables brands to target teens • in a medium they feel comfortable with and • where they are increasingly seeking entertainment • 80% of teens believe the Internet helps them learn • 64% of teens access the Internet at home • Average hours spent a week by teens on • different media: • -Internet 17.5 hrs • -T.V. 14.7 hrs • -Radio 13.4 hrs • 15% of teen spending is done online Teens are extremely savvy consumers because of the Internet. Access to a vast amount of information drives the teen excitement level higher, in turn, making them harder to market to. Many teens use the Internet to find more information on the product or service that interests them. “There are no limits when you’re online. You can do anything. It’s pretty personal. There’s nothing like ‘you have to do this’ when you’re online. You make your own rules. You do whatever you want to do.” – Lisa, 17, Chicago

  11. Yahoo! Creative Strategy Key Insight Reason To Believe Teens want to stay ahead and be on top of everything. They want to be in control and the Internet provides this control. Their day to day existence is full of tedium but their vision and aspirations for themselves are nothing less than exciting, interesting and fun. Yahoo! has everything a teen can want and use to change their world…in their way. Yahoo! products have great features and the best part is that all of them are available in ONE place… making them easier to find and use! Yahoo! products give teens a chance to live their lives their way! Teens can spend QUALITY time on Yahoo!...beyond Return on Investment, Yahoo! offers Return on INVOLVEMENT! Positioning Statement Yahoo! products transform ordinary mundane days and even moments into something extraordinary for all teens. Tone and Manner Mandatory Friendly, fun and cool, with a dash of teen related weirdness to resonate with the teen view of the world. Use of the Yahoo! yodel and Life Engine tagline without trying too hard to be humorous. Creative Executions: A Preamble Now that we understand what teens are like, what they want and how they see the world, we need to show teens that Yahoo! is exactly what they have been looking for. This will be achieved by a creative execution that is fun, cool and unique. We believe there are two realms: the realm of the ordinary, mundane, predictable, and uncontrollable, which reflects the day-to-day existence of teen life and the realm of the extraordinary, exciting, cool, fun and limitlessness that the Life Engine provides. The ads show teens in a moment of transformation, when they step out of ordinary situations and into the “World of Yahoo!,” where extraordinary things can happen. Yahoo! products serve as the portal between the ordinary and the extraordinary. This is represented visually by teens transforming into a state of animation as they come through the portal. The teens in our ads are breaking through to the other side because they are bored with the ordinary way of doing things and are looking for faster, easier and better alternatives. They dare to challenge the ordinary with Yahoo!

  12. Yahoo! Creative The concept of the ads is to showcase Yahoo! products as a means of taking ordinary situations and making them extraordinary. Headline Challenge Ordinary _____... Subject of transformation Product relevant icons that are given a surreal effect Snapshot of reality (ordinary situation) Teen protagonist who is half in reality and half in the “World of Yahoo!” Transformation effect from reality to the “World of Yahoo!” Product Specific Reference Treatment of “Life Engine” Tagline Yahoo! Life Engine ____! Product relevant action word Background color of either Yahoo! Red, Purple or Yellow

  13. Yahoo! Print Ads MESSENGER: Here we have a boy who is tired of the boring “on line” talk and is now jumping into the realm where extraordinary conversations are as common as seeing a girl with an emoticon face or a “Cyclops” boy. MUSIC: A girl challenges her ordinary music experience by jumping through her computer monitor into a Yahoo! concert where she is being handed the microphone and the control over the show. Notice how her arm and feet are being transformed as she comes through the screen. MAIL: A younger teen is picking up mail. As he sticks his hand into the mailbox, an e-mail flies into his hand and he is transformed and transported into the “World of Yahoo!.” This turns an ordinary activity into an extraordinary moment. The headline challenges what ordinary life has to offer. GAMES: Here is an older teen passing through an arcade game into the “World of Yahoo!” Games. He is being transformed into an extraordinary state as he comes through the screen. Whether his game is chess, pool, bowling, or cards, victory is only a click away with Yahoo! Games.

  14. Yahoo! Creative Ads and Copy-Test Results Co-op work with Sprint This is what a co-op advertisement with a partner, such as Sprint, would look like. Internet banner We exposed our creative ideas and executions to our target audience. The group consisted of respondents aged 12-17. Here are our results! Overall, the ads had a positive effect, 80% of the teens stated that they were cool, unique, funny and interesting. There was a general consensus on the overall effectiveness of the headline. They understood the message that with Yahoo! you can challenge the ordinary. It was seen as powerful and strong. This study provided many helpful insights on the effectiveness of our creative product. As stated above, teens like the ChallengeOrdinary concept. The message is clear and presents an offer that they are willing to accept. “The ads are crazy and silly but that’s Yahoo!, they reflect Yahoo!’s character and I think they are fun.” Max R. 14 years old “Overall I like the fact that these ads speak my language. They send a message I can understand.” Keisha C. 17 years old

  15. Yahoo! TV Commercial SFX: Approaching footsteps Video: Male teen walks into his room. SFX: Radio starts playing Video: He walks over, turns on his radio and jumps on his bed to study. SFX: Radio continues Video: The radio is so boring that he falls asleep. His teen sister walks into his room and goes on his laptop and logs onto Yahoo! Music. SFX: Liz Phair’s “Extraordinary” starts blasting Video: The teen is startled by the loud song and he wakes up confused. He is no longer in the ordinary world, instead he has been transported into the extraordinary “World of Yahoo!.” He is now in an animated state. SFX: Music continues Video: He sits up and realizes he is no longer in his room, he is at a party. Then a girl walks up to him. Girl: “Hey Josh, great party! Want to dance?” Video: After getting over the initial shock of his transformation, he smiles at the girl and they start dancing. VO: Challenge Ordinary Music. Yahoo! Music, Life Engine Rocks! SFX: Yahoo Yodel

  16. Yahoo! Media Plan Overview Key Media Elements: Who 13-17 year old individuals who thrive in the digital world and will be loyal registered users Where A national campaign throughout the United States, with a concentration on teen populated cities When A continuous year long campaign, with high ad concentration at “Back to School,” “prom season,” and “the summer break” seasons Media Strategy Increase product differentiation, specifically among females as desired by Yahoo! Provide a wider scope of synergy when enhancing the Integrated Marketing Communication (IMC) message Use invitational approaches to increase teen interest for the product Our selected media vehicleshave a large teen specific composition, which eliminates waste This teen market has diverse media habits, our media plan advertises in an array of media to leverage this diversity Budget Utilize the $10 million budget in the most effective fashion to attain maximum reach and frequency Media Plan: The Fast Pace media plan reaches the teen market by interacting with teens’ daily lives in a non-invasive manner. Our media plan reaches teens at times when the message will not be dismissed or lost in the clutter of traditional media. Our media plan integrates teen oriented traditional and nontraditional media. Internet is the cornerstone; as traditional media push users to their site, Yahoo! pulls teens to the micro site we have created for them, The Y DEN.com. Through our aggressive media plan, reach is maximized by driving up the number of registered users. Fast Pace has heard the teens’ plea for non-intrusive advertising and tailored its plans accordingly. We have an expected reach of 85 to 90% of the teen market, with a frequency of 4.5. Scheduling: The campaign will run from August 1, 2005-July 31, 2006. Fast Pace has found that teens are most receptive to advertising at times when their life is less stressful, examples include winter and summer breaks and when they are specifically in shopping mode, e.g. back to school time. Our plan is initially executed through various media that include Internet, radio, magazine, and a strategically chosen cinema campaign that reaches teens during the heavy movie concentrated summer months. Radio serves as the soundtrack to teens’ daily lives, while the Internet is a staple to most American teens’ routines; therefore radio and Internet will serve as the consistent foundation of traditional media. Cable television, Channel One, and syndication advertising will follow a flighting schedule based on our studies of teen TV viewing habits. Campaign Timeline: March 2005 April 2005 May 2005 June 2005 July 2005 August 2005 - July 2006 August 2006 - Sep 2006 >> Research & Development << >> Production << >> Implement Plan << >> Evaluation <<

  17. Yahoo! Media Plan Television Cable: adds reach and frequency when joined with other chosen media vehicles. The cost of advertising on cable is low relative to other media. With cable, there are precisely defined youth audiences. Syndication:allows Yahoo! to selectively reach the youth market. Television advertisements have sight and sound to demonstrate the benefits of Yahoo! There is cost efficiency when advertising during syndication, as an advertisement on fringe is less expensive than one on primetime, while maintaining a high teen composition. Cable: Viacom - ($1,539,505) 30 second spots A major purchase across Viacom media vehicles enables Yahoo! to avoid media owned by * Time Warner, while leveraging quantity discounts. Television: Syndicate - ($898,391) 30 second spots The syndicated programs chosen have a higher teen audience than network broadcasts. Comedy and reality programming consistently rank the highest among teens, with 58% of teens tuning in on a weekly basis. Television: Channel One - ($1,000,000) 30 second spots Channel One is a Primedia Company in its 14th year of broadcasting. With 8 million teen viewers per day, Channel One broadcasts news into 12,000 Junior High and High Schools. It has an average rating over 20 times that of MTV, with a CPM of $25. Key Strategic Point: A strong partnership with Viacom gives Yahoo! advertisements better placement, greater quantity discounts, and the ability to forge special product placements in such networks as The N on Noggin, MTV and BET. *Sources at Warner Brothers stated that they would not accept any Yahoo! advertisements on any media owned by AOL Time Warner.

  18. Internet -($1,142,775) Combination of invitational advertisements such as Banner, Flash Video, Pop Up, and Skyscraper advertisements will be used to avoid awareness decay Gurl.com, a website frequently visited by teen girls, will allow Yahoo! the opportunity to purchase a pre-sort e-mail list of 800,000 females. Selections: Analysis of Simmons research indicates that over 46% of females enjoy visiting e-zine sites, such as seventeen.com, cosmogirl.com, gurl.com, and alloy.com CCS.com reaches millions of action sports enthusiasts, especially teen males Unique interest sites such as music sites, game sites, wrestling sites: TeenMusic.com Cheatplanet.com quizyourfriends.com Deviantart.com funnyjunk.com 411mania.com GamePro.com lyric.com Livejournal.com Picturetrail.com Yahoo! Media Plan Internet Internet:an interactive medium, requiring interactive participation. It is a low cost medium that can be tailored to niche audiences. The Internet provides supplemental information, which is especially important for the teen micro site, proving to be an Integrated Marketing Communication (IMC) asset. The Internet is also the ultimate source of just how many prospects were delivered. “Talk to them [teens] through television, but also use magazines, radio, grassroots, as well as the Internet. That means keeping an emphasis on television, but adding greater importance to the Internet, which this audience is using to communicate, to get information and to be entertained.” --- Cammie Dunaway, Yahoo! Chief Marketing Officer Key Strategic Point: Top niche web sites with a high teen composition are used to reach a core segment of the teen market, limiting waste

  19. Yahoo! Media Plan Radio Radio:reaches youth audiences through program specialization. Radio has high summer exposure for teens and is excellent for mobile populations, e.g. in cars and when shopping. Radio is a supporting medium because of itslow cost and high frequency. Radio has local coverage availability, which is a key IMC asset. It is integral to building awareness of special buzz and promotional programs, many of which we will do in partnership with Clear Channel and Viacom radio stations. • Radio - ($1,070,000) • 30 second to 1 minute creative radio spots in the top 20 teen populated DMA’s • The top station types that teens listen to are: • Contemporary Hit Radio • Urban Contemporary • Adult Contemporary • Country • Alternative • Rock • Each of the chosen 20 teen populated DMAs reaches 3 to 15 million people • Station format chosen will depend on teen • demand of specific music genres in the given • DMA • Radio serves as a medium that will build • awareness of on going promotions • Given the overall low cost of radio, 55 stations • can be put to use at anytime with a frequency • of over 600 total runs Top 20 Radio DMA’s Selected Key Strategic Point: Strong partnerships with Viacom radio and Clear Channel gives Yahoo! a unique opportunity to promote special contests and events on Viacom and Clear Channel radio stations and at their concert venues.

  20. Yahoo! Media Plan Magazine and Cinema • Magazines-($1,149,544) • 4-color, full page ads • Readers are focused and less likely to multi-task while reading; magazines also offer strong colors and visuals. Magazines are usually offered monthly, and as such have an extended shelf life. Yahoo! can select specialized magazines with a pass along audience that continue to build frequency and brand awareness after the campaign ends. A specialized mix of hobby, fashion, music, and lifestyle magazines are chosen to maximize frequency, thus, focusing on magazines with high teen composition. • Female specific: Seventeen, ElleGirl, CosmoGirl, J-14, Teen Vogue • Male specific: GamePro, Thrasher, Boys Life • An average of 53% of our target audience pays attention to the ads in magazines. • Girls have a heavy interest in fashion, appearance, boys, and career, and boys have specific interests in games, sports, and music. • Our female-specific magazines are a viable tool for consistently reaching web savvy trend-setting teenage girls. For example, teen girls favor magazines that are spin-offs of their older original versions, e.g. Cosmopolitan/Cosmo Girl. • Our research proves that teen boys are more receptive to hobby related magazines. Therefore, male targeted magazines are hobby driven. • 15 - 18 year olds spend an average of 13 minutes a day reading magazines. • Cinema – ($638,292) • 30 Second pre-show countdown in August, • 4,983 Screens in 363 cinemas nationwide • By capitalizing on summer movie blockbusters, Yahoo! will be able to reach masses of teens • 92% of 12-17 year olds recall seeing onscreen advertising • Selection: Summer 2005 Releases: • Deuce Bigalow: European Gigolo and • The Dukes of Hazard • Estimated Delivery: 21,567,573 • CPM/Unit Cost: $29.02

  21. Yahoo! Media Plan Emerging Media Emerging Media:will give Yahoo! strong competitive leverage. By providing new methods of advertisement, emerging media can break through the clutter of traditional media. Through strategically selected emerging media, Yahoo! will have the advantage of exposing a message that teens will acknowledge. In addition, emerging media reinforces the campaign’s ability to reach teens without being overly intrusive. • Blogs - ($100,000) • Selections: Teen blogs such as Xanga.com • Research shows that blogs have a high click through rate • Bloggers and their readers become loyal to a site • and their sponsors • Currently there are very few teen oriented blogs, • this creates an opportunity for Yahoo! • Not only are blogs becoming increasingly popular in • the teen market, but they are providing a way to • reach opinion leaders • Game Advertising - ($100,000) • Some of the game placing options include: • Product placement • On package • During the game, such as Tony Hawk’s Pro Skater • Mobile Advertising - ($100,000) • Provides a direct channel to interact with consumers in a highly • personalized manner • Response rates from mobile campaigns are higher than other media • 48% of teenagers use the instant messaging feature on • their phones • Roughly 17% of teens have already received mobile advertising, this is a • growing percentage

  22. Yahoo! Media Plan “The Sweet Partner” 360 Youth - ($500,000) 360 youth is the marketing and media arm of Alloy Inc. with access to 13.6 million teens in 16,000 schools.

  23. Yahoo! The IMC/Buzz Programs • Fast Pace Advertising has created an Integrated Marketing Communication (IMC) campaign that will break through the clutter of thousands of commercials viewed by teens. We used our Sweet Spot Model to identify how and where teens spend their time. Based on this knowledge, we have developed a rich variety of buzz, promotion, product placement, and partnership programs. We recognize that teens can lose interest quickly if they are not given reasons to visit a website; therefore we have given them many incentives to keep coming back to Yahoo!. All of our IMC initiatives are designed to support an on-going customer contact strategy. • Our view of all promotions and contests are designed to have high buzz potential. Every component should be a buzz machine. All of our ideas will be reflected in the micro site we have created for Yahoo!, which we call TheYDEN.com. A concept description appears later in this section. • Objectives: • Create powerful hallway buzz about Yahoo! in America’s high schools • Create a long lasting relationship between Yahoo! and teens • Increase the fun value of Yahoo! and make it cool • Strategies: • Educate teens about the variety of Yahoo! products • Provide teens with several reasons to visit the Yahoo! website throughout the year • Reinforce the concept of Yahoo! challenging the ordinary Timeline of Events Buzz and Promotions Aug-Sep 2005 Yahoo! Extraordinary Buxx Oct-Nov 2005 Groove to the Cure Nov-Dec 2005 Yahoo! Concert Invasion (Fall/Winter) Jan 2006 Challenge to Find Y! March 2006 Extraordinary Prom Fashion March 2006 Hawk, Bam & You… Apr-May 2006 Plexi-Glass Ads Apr-May 2006 Yahoo! No Ordinary Internship (apply) May 2006 Music Trivia Challenge Jun-July 2006 Yahoo! No Ordinary Internship (work) Jun-July 2006 Yahoo! Concert Invasion (Summer) All Year The Y Den All Year The Challenge Center All Year Challenge the Ordinary Day All Year Branded Entertainment Partnership

  24. Yahoo! Contests and Sweepstakes “Yahoo! Extraordinary Buxx” Yahoo! Back-to-School partnership with Visa Buxx Objective: Increase registered users and familiarize them with Yahoo! Mail. Plan of Action: Only registered users will be allowed to enter. They will receive an e-mail blast about the back-to-school sweepstakes. The email will contain a partnering link to enter a sweepstake to receive a Visa Buxx prepaid gift card. Details: The Visa Buxx card was chosen because it is the leader in teen starter credit cards. This sweepstakes is based on research which shows that credit cards are an important part of teens’ daily lives. Our target has more disposable income than any other generation. This sweepstakes will complement online shopping. Yahoo! will give away 126 gift cards with one grand prize winner and many other second, third, and fourth prize winners. This is so teens can feel as though they have a chance to win the sweepstakes and will result in more teens entering to win. (1 -$5000, 5-$1000, 20-$500, 100-$100) Awareness: Radio advertising accompanied by Internet advertising on the micro site and sponsored pages. “Challenge to find Y!” 30 day interactive virtual scavenger hunt Objective: This contest will familiarize teens with multiple Yahoo! products and how to integrate them. This will increase registered users and average time spent on Yahoo! Plan of Action: Only registered users will have access to the hints that Yahoo! will give participants. Clues will be sent through all Yahoo! products. The clues will lead teens through a series of websites, including Viacom sites, to generate extra buzz. Friends will be able to send tips through Yahoo! Mobile and sign up to receive additional exclusive clues to find prizes. Details: After teens have completed the hunt, they will leave their contact information and receive a response stating their prize. A variety of prizes will be available to the teens, increasing participation. Prizes range from gift cards, mp3 players (with free music downloads), MTV merchandise, sports merchandise, Comedy Central DVD’s, Universal CD’s, movie tickets, etc. The grand prize is a trip for four to Universal Orlando Resorts. Awareness: Web advertising and an e-mail blast to Yahoo! registered users will initiate buzz about the contest. • “Music Trivia Challenge” • MTV music trivia on TRL • Objective: This contest will dramatically increase time teens spend on Yahoo! Music and increase registered users. • Plan of Action: Registered teens will log onto Yahoo! Music everyday for their chance to win a Creative Labs NOMAD player. They can participate in the MTV music trivia question of the day, which will be asked by a VJ during Total Request Live (TRL). After hearing the trivia question, teens can log onto Yahoo! Music to answer. Once on Yahoo! Music, teens will be asked increasingly difficult music trivia. Their chance of winning will increase with the points they score. Results can be seen on Yahoo! Music. The highest scores at the end of the week will win the NOMAD player. The contest will last one month. • Details: Every week one NOMAD player will be given away to each of the top five trivia winners. The trivia questions will come from all genres of music in order to incorporate the tastes of all teens. Our research proves that music is a staple in a teen’s daily life. This contest is a challenging and entertaining way to engage teens and test their music knowledge. • Awareness: Mention on MTV’s TRL, accompanied by advertising on MTV, and Internet ads.

  25. Yahoo! Buzz and Promotion Extraordinary Prom Fashion Objective: Increase awareness of the Yahoo! name and its benefits during the prom season. Plan of Action: The Challenge Ordinary Fashion Show will be a 30 minute web-cast production. The filming will take place at the Yahoo! Sunnydale headquarters. A small runway and lighting will set the stage of a virtual fashion show. Models will be real teens; male and female fashions will alternate. Registered teens can stream the show live from the micro site. Subtitles will indicate the designer. After the show the micro site will allow teens to check the price and website of any fashions that they liked. They can print out Yahoo! Messenger coupons and visit the sponsoring store. Details: Teens, especially females, will be receptive to the show because it will give them a direction to begin their prom dress shopping. It will give Yahoo! presence in malls, where teens spend a lot of their time. Yahoo! will invite Golden Asp, After Hours, Prom Spot.com, David’s Bridal, Men’s Wearhouse, Bestpromdresses.com, Bella Boutique, Rampage, and Steve Madden to participate in the show. Awareness: In exchange for their products featured on the show, the clothing stores will place stand up ads at all their locations promoting the web-cast. An e-mail blast will be sent to a select group of teens from gurl.com and high school newspaper ads will be taken based on 360 Youth’s database. Challenge the Ordinary Day… Objective: Teens will spend time on Yahoo! looking at each other’s clips. It will leverage the “Challenge the Ordinary” campaign. Plan Of Action: Teens will create video clips of themselves challenging ordinary situations in an average day. These clips can be recorded via cell phones, digital cameras, etc. They will be archived in a link off the micro site for teens to show their friends. During themed promotions, such as Halloween or Valentine’s Day, teens will challenge the theme of the season. Details: Teens will upload these streaming videos. There will be a TV box on the opening page that will play the “best clips of the week.” Teens will rate the clips they think are the funniest in challenging the ordinary, much like on Launch. Teens will love the interaction and will help their friends try to be the “best of the week.” Awareness: This buzz worthy, fun and innovative activity will be advertised on the Yahoo! home page, TheYDEN.com, on the radio, and in advertisements and editorials in teen magazines. “Hawk, Bam & You…” Objective: This promotion will dramatically increase time spent on Yahoo! Mobile and Yahoo! Games. Plan Of Action: Teens will download Tony Hawk Skateboarder 4 from Yahoo! Games to their mobile phone. If they win the game and the challenge on their Yahoo! Mobile, a screen will appear allowing the teen to enter their Yahoo! e-mail address. The teen will be instantly qualified to win a trip with a friend to learn how to skateboard. They will also appear on an episode of Viva La Bam with Tony Hawk and Bam Margera at Bam’s house in West Chester, Pennsylvania. Detail: Viva La Bam is a MTV show and this promotion will strengthen our Viacom partnership. Awareness: The promotion will be advertised in Thrasher Magazine, Gamepro, on the Yahoo! Games site, the Yahoo! home page and on rock formatted radio stations. Yahoo! No Ordinary Internship Objective: Increase registered users, strengthen bond between Yahoo! and the teen community, and generate hallway buzz. Plan of Action: To participate teens will create their own web page on Yahoo! and they must be registered users to apply. They can visit TheYDEN.com to begin creating their virtual resume. Once a teen completes a virtual resume consisting of a brief bio and a short essay as to why he or she is no ordinary candidate for the position, their entry will go under review to win their dream internship. Details: Yahoo! will offer teens a once in a lifetime opportunity to become a Yahoo! intern. Teens can choose from having a music, games, or movie internship position. According to U.S. News and World Report, teens are increasingly concerned about being financially successful. This paid internship gives teens the start to a strong resume and a successful career. There will be 50 winners that will be selected to intern with Yahoo! for two weeks. They will report to the Yahoo! location closet to their residence (Dallas, TX, New York City, NY, Pasadena, CA, Santa Monica, CA or Sunnyvale, CA). If necessary, Yahoo! will provide the interns with living quarters, travel expenses, food, etc. Awareness: Advertising on TheYDEN.com, various websites specified in our media plan and on a select mix of radio stations.

  26. Yahoo! Buzz and Promotion Plexi-Glass Ads Objective: To innovatively create awareness of the Yahoo! name and generate buzz among teenagers. Plan of Action : High School Placement The Yahoo! purple and yellow tie dye tractor will visit high schools in Texas, California, Florida, Illinois, and Ohio at dismissal time. The plexi-glass box secured on the back will have one or two actors demonstrating the benefits of a Yahoo! product (i.e.two kids playing Yahoo! Games interactively from two sides of the world). The banner on the truck will direct the students to stay ahead at www.TheYDEN.com. TRL Live Ad Placement For an entire week, live plexi-glass ads will stay outside of TRL studios, with each day emphasizing one of the top five major Yahoo! products. The VJ will talk about it, while the camera shots will capture the buzz and teens will tune in to see what is happening on the plexi-glass stage. The VJ will mention high schools that will be visited by their own plexi-glass ads. Details: The idea is unique, inexpensive, and an effective way to stand out in a teens’ ordinary day. Awareness: Will generate awareness of Yahoo! products in areas where teens spend much of their time. Yahoo! Concert Invasion Objective: To increase registered users and awareness of Yahoo! on the spot. Plan of Action : The Yahoo! kiosk will visit 20 radio promotion concerts, 10 in the winter and 10 in the summer. The kiosk will be a spectacle that will attract visitors before and during the event. The kiosks can be visited by up to 300,000 visitors. At the show we will create a circus type energetic environment offering free CD’s with music downloaded from Musicmatch to the first 100 visitors at the kiosk. Also, Dell computers will offer the chance for teens to register for Yahoo! and surf the Yahoo! site. The radio concerts last all day and teens will want a break; Yahoo! will be their haven. A digital photo booth will take complimentary pictures of teens and their friends or teens with a superimposed celebrity. They will receive a redemption code that will allow them to download their pictures when they register. To attract teens to our kiosk and to break from the clutter, teens can receive free Yahoo ! tees co-sponsored with Jones Soda and Dell computers. Details: We will have a strong bond with concert venues based on our radio advertising buys which will promote the concerts and the Yahoo! kiosks. Awareness: To create advance buzz, a pre show e-mail will be sent to teen listeners of the radio station and participating artists’ fan clubs. The e-mail will be redeemable for a chance of a meet and greet with artists’ at the show. Included in the kiosk rental costs is advertising on the radio stations’ site and on the radio that begins three months before the concert. The Challenge Center Objective: To increase registered users by creating a buzz through teen hobbies, clubs and groups. It will be a great online place for teens of like mind to come together and interact, compete and enjoy their time online. Plan of Action: Advertisements on the radio and Internet will offer teens in most high schools, student organizations, Boys and Girls Clubs, Junior Achievement chapters, and Boy Scout/Girl Scout groups the opportunity to organize a group site. It will have message boards, photo postings and chat rooms that are accessible through TheYDEN.com. As an incentive to join the chat group, the first three members of the organization to join will receive an entry in an online raffle for one of 50 $500 college scholarships and two $5,000 scholarship grand prizes. Details: Teens on the Challenge Center will be encouraged to suggest ways to make their group better and more exciting. Awareness: Will generate awareness through advertisements on the radio and Internet. Groove to the Cure Objective: To promote Yahoo! as a socially responsible company and increase teens’ role in society with the help of Yahoo! Plan of Action: Yahoo! will work with the largest high schools to create a charity mixer to raise money for the American Cancer Society. Yahoo! will leverage its partnership with Viacom to supply a DJ to each mixer. Jones Soda will partner with Yahoo! to provide soft drinks. With a $10 donation, high school students can enter the dance. Also, Yahoo! tee shirt give-a-ways will the strengthen Yahoo!’s presence. To increase interest in this charity event, the concert will be streamed live on Yahoo! Music allowing students to give “shout outs.” Details: The proceeds of these events will be donated to the American Cancer Society. We have found that cancer is a disease that affects many families and that teens are looking to give back to their community. Yahoo! will give them a creative way to help and will work directly with high school student councils to plan the event. Awareness: Radio advertising, high school newspapers, and Internet ads on TheYDEN.com and on other sites described in the media plan.

  27. Yahoo! The Y DEN Teens have been born into the world of technology and navigate the Internet with ease. AOL and MSN have taken advantage of this by introducing their own teen websites: AOL Red and MSN threedegrees. However, both these websites lack interactivity. Taking advantage of this weakness, we have introduced a new Yahoo! teen website called “The Y DEN.” The name signifies a place on the web that teens can go to with their friends to relax and enjoy themselves. They can customize their own den, find out the latest happenings in entertainment, listen to music, discover the latest and greatest Yahoo! activities, and much more. This website is extremely interactive and is sure to engage teens to build a long-term relationship with Yahoo!. We know that “The Y DEN” will be popular with teens because of its captivating quality and will bring Yahoo! into the foreground of a teenage mindset. This is the place where all Yahoo! products can be aggregated and accessed by teens. “The Y DEN” is the entryway into the teen Yahoo! hangout spot. By featuring this image on the main Yahoo! homepage, teens are invited into this fun and appealing micro site. • The Suite symbolizes the various rooms or “suites” that a teen can go to for fun: • Personalize Your Den gives • teens the option to express • themselves through customization • of their “The Y DEN” site. • VIP Exclusive allows teens that are • affiliated with affinity • groups, such as The Boy Scouts, to • interact with their respective • chapters nationwide! • BLOG IT: 360 lets teens instantly • post thoughts and daily events to • share with others. It is a venue • where they can voice their • ideas and opinions. The television screen is an INTERACTIVE feature that keeps teens up-to-date on the latest Yahoo! hosted activities. Teens can view different Yahoo! commercials and have the ability to choose from three different endings! The Remote Control navigates teens through the various Yahoo! activities and lets them see what they want on the television screen. Although the Product Bar is often found at the top of a webpage, we chose to offer a distinct option. You will find the Product Bar at the bottom of the screen and always visible, even when scrolling down the page. This unique side scroll option gives teens the ability to scroll from one Yahoo! product to another.

  28. Yahoo! Viacom Partnership - O’Grady Yahoo! Viacom Branded Entertainment Partnership Yahoo! Will Introduce Plot Integrated Product Placement Yahoo! Meets O’Grady High, Possible Plot Concepts Product placement will connect and integrate into an episode’s plot, it isn’t background instead it is foreground. Yahoo! will dominate in terms of product placement on O’Grady’s, a show on The N on Noggin, a Viacom property. This is a stronger idea than a one-shot movie placement. O’Grady is an animated show about high school students that runs on The N. It revolves around the drama of being a teenager with the added element of “The Weirdness.” There will be background product placement, such as characters using Yahoo! Messenger, Yahoo! Mobile and Yahoo! Search in every episode. Some episodes will revolve around Yahoo! as an important part of the episode’s plot. •  One day the Yahoo! plexi-glass appears in front of O’Grady High School and the kids are crowding around to see what it is all about. That is when Abby falls for the cute guy in the plexi-glass and they develop a comical relationship through the plexi-glass. •  Beth stumbles upon the Yahoo! “Challenge to Find Y!.” Beth starts to win prizes and Abby wants to cash in on her success, so she convinces Beth to keep playing and winning, so that Abby can get the free stuff Yahoo! is giving away. Finally, Beth has had enough and takes back everything she won from Abby. • Abby manages to get tickets to a rock concert and invites Kevin, Beth and Harold to join her. Their parents drop them off early and they walk around the parking lot. They spot a large crowd going in and out of the Yahoo! Kiosk tent; they go over and see what all the fuss is about. They take shirts, hats, and make their own CD’s. The question is: will “The Weirdness” strike again?

  29. Yahoo! IMC/Buzz Marketing and Promotions Budget – Direct Costs *Note: Awareness of our buzz and promotions will come primarily through the radio and the Internet ads, 5% of working media intended to build awareness for promotions and not included in above costs.

  30. Yahoo! Media Budget Allocation: $10 Million The Transformation Campaign is Tailored to Fit Gender Needs A large part of the budget is dedicated to reach both genders via gender neutral vehicles. One of our marketing objectives is to increase Yahoo! differentiation among females, as such we are dedicating a slightly higher percent of our advertising budget to reach this market. Males tend to read less, therefore traditional print options are limited and we are allocating more money to blog and video game advertising for boys. Gender Neutral

  31. Yahoo! Flowchart For All Media and IMC Initiatives

  32. Yahoo! Measurement Value Chain “While I am thrilled with our financial results, I place just as much emphasis on our user metrics as a measure of our success.” -Terry Semel, CEO Yahoo! Measurement Value ChainTM Our belief is that all great campaigns should be measured both during and after the campaign to constantly improve the work and make us all better at what we do. At Fast Pace Advertising, we value the impact of our marketing initiatives, not only on the quantitative success, but the qualitative as well. We believe that better metrics lead to more informed decisions. Our Measurement Value Chain™ reflects our approach to a research based evaluation system. Below are value chain measures at each stage of the program development and execution for all of our marketing initiatives. Set Measurable Goals and Objectives Interim Measures ROI "Progress is not progress if it cannot be measured“ -W. Edwards Deming

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