Yahoo Unveils New Ad System
Yahoo lifted the curtain today on a major overhaul of its ad system. Designed to help advertisers better target users based on the keywords they use, the platform is due for full operation towards the end of this year.
Yahoo’s previous YSM (Yahoo Search Marketing) system was originally developed by GoTo more than eight years ago, the company which became Overture and was bought by Yahoo in 2003. The search engine has recently begun to falter amidst competition from its rivals, generating an estimated 30 to 50 percent less ad income for each search than Google.
The new platform will implement an adjusted ranking formula, similar to Google’s, which takes into account the click-through rate of an advert in addition to its pricing. It will also include improved technologies for bidding and managing portfolios.
With these changes and others, Yahoo hopes to simplify its interface, speed up the process of launching an ad campaign, improve its geographical targeting, as well as become more transparent to advertisers about pricing. The company has also hinted that the new system could be easily adapted to other hardware channels, such as mobile and IPTV.
Reader Comments.
I’m glad that they are moving away from that formula. You would figure that they would have adopted YO some time ago. It makes no sense to give someone a priority placement just because they are willing to pay a high cpc, if thier ctr is low. When you have someone with a lower cpc and a higher ctr.
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