Yahoo to Unveil New Search Ranking Model
On February 5th, Yahoo will unveil its new search ranking model in the US, hopefully bringing with it better search for users and better leads for advertisers.
With the new ranking system, search ads will be listed according to quality as well as keyword to “unlock the full potential of Yahoo!’s search marketing network,” according to CEO Terry Semel in a statement. “With this important piece in place, our new search marketing system will allow Yahoo! to more effectively connect people with the businesses, products, services and information they are passionate about.”
Currently, Yahoo search ads are ranked solely by bid price, meaning the more an advertiser pays for an ad, the higher up their ads appear in the rankings. With the new system, the advertiser’s keyword bid will be considered along with the ad’s quality, determined by how well the ad has done in the past compared to other ads that will appear alongside it.
Yahoo first revealed the new system, code-named Panama, last year at the Search Engine Strategies conference in San Jose. When it goes live in February, advertisers will be able to view each ad’s quality index. Panama will also be able to predict each ad’s performance and average position based on the advertiser’s budget and the ad’s estimated quality.
Yahoo expects to open Panama to non-US markets some time in the second quarter of 2007.
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