Yahoo to Release New Search-Advertising Software By Summer

BURBANK, Calif. — In development since late 2004, Yahoo has been busy at work creating a search-advertising system code-named Project Panama. On May 17, the company will offer more details about the planned rollout and financial impact of the ambitious project expected to release this summer.

Twenty-eight teams in three different locations are building the system that will re-shape the way paid search engine ads are displayed on Yahoo. The new interface will show ads with graphics and video, not just text.

However, the initial version will work on a smaller scale. Advertisers can enter the keywords they want their ad to appear next to and the most they are willing to pay per click. There also will be an option for geotargetting, or specifying a geographic region in which the ad will be viewed. Google already offers this option.

The company would not say how much revenue it expects to generate from this new technology, but a market expert predicts it will increase Yahoo’s search-advertising revenue more than 20 percent immediately — approximately $125 million in the fourth quarter this year and $600 million in 2007.

So how will Yahoo’s search advertising differ from Microsoft or Google?

The company says it will offer advertisers more information about their ad placement, like estimating how many clicks per day a given bid will generate. It also will show how many more clicks they estimate an ad will receive for each bid increase.

“One of the primary complaints we get is users can’t explain to their bosses what they could get for spending the next $1,000,” Steve Mitgang, Yahoo’s senior vice president, told the New York Times. “Now they can take this to their bosses to justify spending more.”

After Yahoo purchased Overture Services for $1.6 billion in 2003, the company began to realize the confines in its own proprietary software, which has led to its lag behind Google in online search ads the New York Times reported. While Google is the anointed king of online advertising, Yahoo also faces renewed competition from Microsoft, which is developing its own search-advertising model.

Google’s ad service dominates the market because it implemented an algorithm that predicted the popularity of certain ads so the most profitable ones would be placed on top, where most surfers tend to click. Previously the price of an ad and its placement was determined by a computerized auction resulting in a system where the advertiser that listed the highest bid-per-click was listed first.

While the company anticipates the release of Project Panama it will still continue to operate on its old system software.

“We are flying an airplane while rebuilding it,” David Henke, Yahoo’s vice president for engineering, told the Times. “This is a bigger project than we expected because we are doing it in parallel with our existing systems.”

Copyright © 2024 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

Clip Page Launches 'Creator Analytics' Feature

Custom content marketplace Clip Page has launched the Creator Analytics feature on its platform.

BBWXXXAdventures Relaunches Through Grooby's Blue.xxx

Paysite BBWXXXAdventures has relaunched under Grooby's new website management company Blue.xxx.

Flirt4Free Announces 'Tease the Season' Holiday Contest

Flirt4Free has announced its Tease the Season promo and model contest, which will run Dec. 21-25.The competition is led by the return of the Snowflake Contest, where models can be gifted digital snowflakes by their fans. The models who collect the most snowflakes by 11:59 a.m. on Christmas Day will win cash prizes.

SWR Data Publishes 2024 'Top Creator Platforms' Report

Adult industry market research firm SWR Data has published a report on the Top Creator Platforms of 2024.

MintStars Joins Pineapple Support as Supporter-Level Sponsor

Content platform MintStars has joined the ranks of over 60 adult businesses and organizations committing funds and resources to Pineapple Support.

Politicians Aim to Study Effects of FOSTA-SESTA on Sex Workers

In an encouraging sign for sex workers, California State Representative Ro Khanna and U.S. Senator Elizabeth Warren of Massachusetts have reintroduced the SAFE SEX Workers Study Act, which aims to study the effects of FOSTA-SESTA.

Pornhub to Shut Down Access in Florida Over Age Verification

Aylo will geoblock Pornhub across Florida starting Jan. 1, when HB 3, the state's age verification law, goes into effect.

AEBN Publishes Popular Searches by Country for October, November

AEBN has released the list of popular searches from its straight and gay theaters by country in October and November.

Jacquie et Michel Acquired by 'International Fund'

French adult studio Jacquie et Michel has been acquired by an international fund, marking a significant development for the well-known brand.

YouPay Joins Pineapple Support as Sponsor, Introduces 'Permanent Donation' Feature

Australian gifting platform YouPay has joined the ranks of Pineapple Support’s partner-level sponsors.

Show More