"We want to conclude pan-European deals from Switzerland"

Fru Hazlitt, European Sales Director at Yahoo, on the opening of the Swiss sales office Yahoo is regarded as one of the last rocks in the stormy surf of the new economy. The Internet giant is pursuing a European expansion policy and will in future offer itself as an advertising medium in Switzerland without the detour via online marketers. At the opening of its own sales office in Zurich's Seefeld district, European Sales Director Fru Hazlitt provided information about Yahoo's plans. How important is Switzerland for Yahoo in Europe? Fru Hazlitt: Switzerland is the first country without its own Yahoo site to have a sales office. We have our own sites in eight European countries and are represented by online marketers in ten others. In Switzerland, we have been represented by online marketers for longer than in most European countries, and this is the first country in which we are investing and setting up our own office. Why is Switzerland so important? Hazlitt: There are four reasons: Firstly, the proportion of Internet users in Switzerland is already at 34 percent, which is very good. Secondly, many users here already use Yahoo. Thirdly, we look at the local advertising market to see whether it is active and of high quality. This is the case in Switzerland. Fourthly, many major brands have their headquarters in Switzerland. We want to conclude major pan-European deals from here. Companies like Nestlé or Credit Suisse are more difficult to win as clients for international projects if you don't have a local presence. Nevertheless, Switzerland is actually a small market. Hazlitt: It is a small market, but the Swiss have... money! Yahoo is present in most Western European countries. What does the further expansion strategy look like? Hazlitt: We have already set our sights on Eastern Europe. We are negotiating with partners who will represent us there. Eastern Europe is a completely new market and we need to understand it first. That is why we are trying to develop Eastern Europe via external sales outlets for the time being. Is Europe becoming more important as a market than the USA? Hazlitt: Definitely. The Americans have done a fantastic job of developing the Internet, and Europe is still lagging behind at the moment. But by 2003 there will be more users in Europe than in the USA. In terms of cell phone usage, however, Europe is ahead, and that is also an important aspect. I think that in the next two years, network access via cell phone will become very important. Are there fundamental differences between the American and European markets? Hazlitt: E-commerce has a different status in America. In the USA, there is a credit card culture and people are used to making purchases by phone or mail order. Europeans have more reservations about this. Americans are also less skeptical about security in e-commerce. They are used to making purchases by phone with credit cards without leaving a signature. Is the Internet also better integrated into the advertising industry? Hazlitt: In the US, the Internet has now become part of the traditional media mix. Most traditional advertising agencies have large online departments. In Europe, the Internet is still largely left to the specialists. This will also change when agencies realize that they can earn money with the Internet Does Internet advertising have a future? Hazlitt: Around 80 percent of Yahoo's revenue is generated by advertising. I think this proportion will remain very high. Many people are skeptical about whether advertising on the Internet works at all. Of course it works, but I think more is expected from Internet advertising than from any other advertising medium. The advantage of internet advertising is that you can get people to actively do something. Nobody knows whether a poster will persuade someone to make a purchase. But you can check whether someone actively uses a website through a banner. The Internet has huge growth potential as an advertising medium. Is it still mainly companies from the new economy that place advertising on the Internet? Hazlitt: That's changing, and I'm glad about it. Many old-economy companies now think that they need to be present with web advertising, but are not clear about how. Yahoo is now being asked by traditional companies how to design advertising on the Internet. That's a good start. Isn't the Internet also limited in its potential as an advertising medium? Banners, for example, will always remain relatively small. Hazlitt: Who says that banners will still dominate in two years' time? I believe that the advertising possibilities on the web will probably only be ten percent exhausted. New technologies will also make new forms of advertising possible. How does Yahoo intend to assert itself against the European competition? Hazlitt: We have an established and very well-known brand. The Internet has been around for almost six years and we have been there from the beginning. This gives us enormous advantages. We have the experience, the know-how and, above all, a large audience that is growing every month. In addition, although we are an American company, we always fill key positions outside the USA with locals who understand the local market. Will only a few global players survive the competition? Hazlitt: I wish I knew that. But it's very likely. And Yahoo intends to be one of them. Interview: Bruno Amstutz