Financial terms and the length of the deal were not disclosed. While P&G spent $3.7 billion dollars worldwide in advertising in 1998, it spent only a fraction of that in online media.
The deal with P&G includes cost-per-thousand revenue on ads placed across Yahoo!'s properties, fees from co-creating microsites for P&G's various brands and a return on investment component in which Yahoo! will receive fees based on the percentage of users who register for a particular P&G promotion.
In one integrated promotion, for instance, Yahoo! created a game called Pringles Ladders. In a Pepto-Bismol promotion, Yahoo! created "Hot Summer Relief,'' a storyline featuring five young characters who are traveling around the world, and have a need for various Pepto-Bismol products. Many of the deals include integration with Yahoo! chat, message boards and other product features.
Yahoo! President-Chief Operating Officer Jeffrey Mallett said the portal was one of two major online media players on which P&G chose to focus its online media efforts, but that the deal was not exclusive.
"We had a large enough footprint, so they could get a large enough sampling base,'' Mr. Mallett said, adding that P&G also liked that Yahoo! could do direct marketing and branding.
Yahoo! has 47 million registered users.
Copyright July 1999, Crain Communications Inc.