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Friday, April 7th, 2006

Yahoo/Overture Testing Google-Like Paid-Ad Placement Model

 

Yahoo is testing a new paid-ad placement and revenue model in Scandinavia that appears similar to the algorithm Google uses to determine the placement of paid advertising.

Basing its rankings on a combination of cost-per-click and the number of times search users click specific paid ads, Yahoo’s new ad placement system is expected to be rolled out in the UK in July.

While there is no official word on when the new system will be introduced in North America or other parts of the world, an announcement about Yahoo’s intentions is expected in the coming weeks with speculation on a global rollout in late 2006 or early 2007.

Codenamed, Project Panama, the switch is expected to bring a higher volume of click-throughs than the current system that determines ad placement based on the highest keyword bidder.

According to a story in Forbes Magazine, Yahoo has already notified a number of high volume search buyers of the upcoming changes.


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