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Monday, May 15, 2006

Search Engine Journal » Yahoo’s New Search Advertising System:
"...Yahoo’s new “Panama” Search Marketing system comes on the heels of the MSN adCenter launch and heightened Google earnings via the Google AdWords interface. MSN adCenter includes search keyword, demographic (man, woman.. etc.) and geographic targeting while Google AdWords offers search keyword, automated behavioral profiling and geographic targeting for their search & contextually targeted offerings. Yahoo’s new system is expected to challenge both Google and newcomer Microsoft’s systems.

Wall Street Journal adds that Yahoo’s new advertising system will also go way beyond traditional web search; “making it easier for advertisers to run sophisticated keyword ad campaigns, judge their effectiveness and to improve them. It also is built to, eventually, carry Yahoo’s keyword ads beyond personal computers to mobile devices and television and to allow the addition of graphics, video content and click-to-call capability in its ads.”

Yahoo, which serves more search engine advertising than Google, has experienced difficulty in increasing the amount of clicks and cost-per-click of their search advertising placements...

...With the new system, even though the New York auto dealer is bidding the most, their ad may be served in a lower position due to the low click thru ratio and geo-specific market. Yahoo’s new Search Marketing technology should come more relevant advertisements across keyword searches and the Yahoo Network, leading to more clicks and in turn; more revenue.

The New York Times reports : Those clicks should immediately turn into a lot more cash for Yahoo. It will not say how much. But Jordan Rohan, an analyst for RBC Capital Markets, estimates that if the strategy works, Yahoo will increase search-advertising revenue at least 20 percent right away — about $125 million in the fourth quarter of this year and $600 million next year..."

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