The New Yahoo! Search Marketing Ad Platform

By Gary Finn

Account Executive

It is not without time that Yahoo! Search Marketing has decided to roll-out its new advertising system, code name ”Panama”, with a host of new innovative functionality.

Yahoo! Search Marketing has been using the same auction bidding system since GoTo.com launched almost 8 years ago. Consequently, with increase popularity of Search many search marketers have been anxiously awaiting an updated system.

The new Yahoo! Search Marketing application launch date has been set for Q4 2006 to select US advertisers and to remaining advertisers for early 2007.

The first and most significant change is the pricing system. No longer will the highest bidder gain top ranking. The system will now move to a similar ranking policy as Google Adwords, one that’s based upon bid price, ROI, Quality Score and a number of other factors.

The new Yahoo! Search Marketing will also offer more sophisticated targeting with graphics and user media functionality. Calls to action will go beyond target URL and specific landing destinations geared towards the user’s web surfing application of choice (i.e. mobile PDA, laptop, PC and more). In addition, geotargeting is determined by the advertiser in a new system which enables the user to select specific local area zones with help from a mapping system.

Additional functionality includes a new split A/B testing service which can be optimized by Yahoo!, or manually by the advertiser.

Yahoo! has also set up a more sophisticated notification system which informs the advertiser when keywords are declined, budgets are reaching total spend, and billing or credit information. More importantly, the new system can also be customized by the advertiser so Yahoo informs the user with customized information critical to each specific campaign.Lastly, Cost per Acquisition (or CPA) is where Yahoo! will automatically optimize a site that is utilizing their conversion tracking system. CPA budgeting brings the usability from the third party SEM management systems into Yahoo!

In conclusion, features such as CPA targeting, expedited editorial approval and slicker geotargeting may help Yahoo! take a bigger slice of the search market pie. Visit the dedicated Yahoo! Search Marketing Upgrade Center for more information.