Blog Post

Yahoo’s Search Adv System Rehauled and Ready To Relaunch

Yahoo is going to re-launch its search/contextual advertising system later this summer, and does a PR blitz with stories in WSJ, NYT and FT. The new system is also built to, eventually, carry Yahoo’s keyword ads beyond personal computers to mobile devices and TV and to allow the addition of graphics, video content and click-to-call capability in its ads.
Today Yahoo is opening up the APIs for third-party programmers in the advertising world who want to build additional software tools.
NYT: Yahoo’s project was worth the two years and tens of millions of dollars it cost — far more money and time than it expected. 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.
FT: As part of the overhaul, Yahoo will change the way it prioritises the adverts that are displayed in its search results..for now, it is pure price bidding; the new system it will also take into account the CTRs of an advert, along with a number of other secret factors, an approach that echoes the one followed by Google.