The strategy proposes targeting advertisements based on user interests collected from ad blocking data. It involves surveying ad blocker users to understand what they want from ads. Resources will focus on improving current ads and developing a new ad model. Effects include more satisfied customers and employees from relevant ads, and increased long term revenue as ad blocker usage decreases. Metrics will measure employee and customer satisfaction, sales growth, and return on investment in the new strategies.

1. Business Analytics Capstone
Framework for Strategy
Apostolos Tsilikis
23/10/2016

2. Problem Statement

3. Problem Statement–
Describe the Problem Adblockers present to Yahoo
Use this space for describing the problem. Be as specific as possible! Consider the implications of adblockers on the following: customers, revenue, and Yahoo’s internal
organization.
The debate of ad-blocking problem is taking huge part between advertisers and companies such as Google and Yahoo. The ad-blocking
application use grew 41 % in the 12 months up to August 2015. Also the cost of ad-blocking is calculated nearly 22 billion to advertisers,
during 2015. Basic face of the problem is that the ad-blocking software becomes mainstream and major mobile providers include in
their software, ad-blocking applications. From the other side ad-blockers are expressing the opinion that they are not opposed to
advertisement but that their vision is to make advertisement better.
It is important to have a review of the implications of adblockers on the customers, revenue and Yahoo’s internal organization. The
adblocking software really destroys the relationship between advertisers and publishers. Executives are expressing the opinion that the
adblocking is a nuclear bomb for the advertisement. Thus there will be a big economic loss as impact of the ad-blocking software use. In
my opinion this fact will create a big discussion on the internal organization of companies such as Yahoo.
At the end I would like to agree with the opinion that the real solution to the ad blocking problem, is advertisements to be so excited
that the users would not want to block them.

4. Strategy

5. Strategy
Describe your proposed strategy
Make sure your strategy is clear, well-defined, and feasible
As I have mentioned to the problem statement the point of ad-blocking problem that we have to focus, is the quality of the advertisement. We have to target on
the interests of our customers. The adblocking software is our tool. What the customers really have block? How can we have their attention? And finally how
can we make, them to love our advertisements? Our scope is to make our advertisements attractive and to do not disappoint our customers with a feeling of
mind manipulation.
Actions.
 We have to use the information that ad blocking software gives to us. We can collect information about our users and their needs. We will understand the
reason that adblocking software got so extended use.
• We have to make targeted surveys to users that have used adblocking problems. The main question is What would you really want to see in an
advertisement? When would you like to see the advertisement.
These two actions will drive us to useful answers to the following questions: What has gone wrong? and What can we do ?
After the collection of the information we have to proceed in the following actions.
• We have to drive our operating and people resources in two directions. In the first direction we have to solve the problems of our advertisements that have
been blocked. This direction includes new proposals to our customers. Also includes a vision of a new advertising model by our organization. This is the second
direction of our resources. Our team has to work on data of Yahoo users that have used adblockingsoftware, and in needs of Yahoo customers. I think that
this work will really drive, not only to lower use of adblocking software but also in a more friendly and useful kind of advertisement.
• Measurement of costs. We have to spend money, to make money. Maybe the strategy looks expensive. But what if adblocking
software dominate the market. We have to win back our lost revenue and the only way is to make Yahoo users to deactivate the adblocking
software. Maybe the cost of investigation will be increased but the expansion of use of adblocking software is already a serious threat.
I am sure that we can take advantages from my strategy. Our team can create a new attractive kind of advertisement that will bring us back our lost revenue and
will create new earnings.

6. Effects and Measurement

7. Effects and Measurement
Describe the anticipated effects of your strategy and how you will measure them
Effects of Strategy.
Internal Organization.
The results of our strategy are immediately. We have understood the reasons that caused ad-blocking, what and when our users want to see our advertisements. Then we took
the following actions. Firstly we allowed the use of yahoo accounts regardless the use of ad-blocking software. Secondly we created two teams. The team A works in the
improvement of the current advertising model. They utilize the data and create more friendly advertisements for our users. The team B works in our new model of
advertisement. We use our budget for new advertisement model in order to increase our revenue long term.
Customers.
Yahoo’s customers are more satisfied. The redesigned advertisements have earned their interest and the customers are able to link their marketing expenditure with revenue.
Also they are interested to our new model of advertising. Finally the welcome our decision to allow our users to use Yahoo regardless the set up of ad-blocking software.
Revenue.
Effect of our strategy is the increase of revenue, the increase of research expenses of which we are expecting new middle and long term earnings and the improvement of basic
rates.
Measurement of Strategy
Internal Organization.
We have established the following metrics to measure our people efficiency and satisfaction
- Employ satisfaction surveys. - Network data surveys.
- Cost effective people. - Ability to execute the plan.
Operations.
We have established the following model for budget expenditure and we expect the following results.
Customers
1) Marketing expenses to Sales. 2) Awareness of our new advertisement model. (survey) 3) Sales growth after allowance of Yahoo accounts. 4) Market Share
Revenue
In order to measure the effects of our strategy in revenue we pay attention to the following metrics:
1) Sales. Source: Profit and Loss account. 2) Team A revenue: Sales A/Cost of Service.
3) Team B revenue: Sales B/Marketing and Research cost. 4) E.B.I.T.D.A, Net Income
5) Return on Sales, Sales Growth, 6) We forecast Future Cash Flows from investments in new relationship with customers and from new model of advertisement.
TEAM A TEAM B TEAM A TEAM B TEAM A TEAM B TEAM A TEAM B
BUDGET% 50% 50% 40% 60% 30% 70% 20% 80%
EXPECTED SALES % 90% 10% 70% 30% 40% 60% 20% 80%
YEAR 1 YEAR 2 YEAR 3 YEAR 4

8. Effects and Measurement
Describe the anticipated effects of your strategy and how you will measure them
APPLICATION EXERCISE
Optimization model scenario – GYF
A. - BUDGET=INTERNAL PROGRAM + EXTERNAL PROGRAM <= $65000
- HARD SKILLS INTERNAL EXPEN. x 0.2 + HARD SKILL EXTERNAL EXPEN. X 0.7 >= $20000
- SOFT SKILLS INTERNAL EXPEN. x 0.6 + SOFT SKILL EXTERNAL EXPEN. X 0.4 >= 12000
- HARD SKILLS INTERNAL EXPEN. x 0.2 + SOFT SKILLS INTERNAL EXPEN. x 0.6 >=
(HARD SKILL EXTERNAL EXPEN. X 0.7 + SOFT SKILL EXTERNAL EXPEN. X 0.4)*60%
- ALL NUMBERS INTEGER AND >0
B.
PRR HARD SKILLS SOFT SKILLS
INTERNAL 0.2 0.6
EXTERNAL 0.7 0.4 NET PRODUCTIVITY 35884
BUDGET EXPENSEHARD SKILLS SOFT SKILLS
INTERNAL 9,527.00 19,308.00
EXTERNAL 26,582.00 9,467.00
BUDGET 64,884 <= 65,000
HARD SKILLS 20,513 >= 20,000
SOFT SKILLS 15,372 >= 12,000
GYF ROBUST TRAINING PROGRAM