Yahoo! Plans for 'Adsense-like' Ad Network

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Friday, March 11, 2005

Yahoo! Plans for 'Adsense-like' Ad NetworkMuch like Google's Adsense service, Yahoo's product will display text ads deemed relevant to the content of specific web pages in which advertisers will pay only when a reader clicks on their ad. As opposed to regular search-related ads, which are triggered by keywords entered into a search engine query bar, this new Yahoo! product will feature ads that are targeted to the content of a page and its meaning.

Yahoo! Plans for 'Adsense-like' Ad Network

While Yahoo! and Google already go head-to-head for major search advertising partners such as AOL and MSN, Google has largely enjoyed a monopoly serving its signature text-only ads, also known and Adsense ads, to smaller websites... until now that is. Yahoo! has announced plans to launch its own ad network option for small publishers.

Much like Google's Adsense service, Yahoo's product will display text ads deemed relevant to the content of specific web pages in which advertisers will pay only when a reader clicks on their ad. As opposed to regular search-related ads, which are triggered by keywords entered into a search engine query bar, this new Yahoo! product will feature ads that are targeted to the content of a page and its meaning. For example, a news story about a soccer match might display a sponsored link for soccer gear.

Yahoo's on-going push to expand its advertising reach comes as the market for search advertising is taking off, fueling record revenue and profits. At the same time, Yahoo! is busy looking for new revenue sources as it seeks to transform itself into an online media conglomerate and beat Google in the Web search game.

In my opinion, Yahoo's plan for relying on small publishers to show its Overture ads offers a promising growth path for both Yahoo! and its Overture advertisers, given Google's earlier efforts in this niche.

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