Yahoo! to Update to Paid Search Platform

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Friday, May 19, 2006

Yahoo! to Update to Paid Search PlatformYahoo! announced their plans for implementing a new ad system, which is said to offer enhanced ease of use, advanced testing features, geo-targeting, and automated analytics. This new ad system is designed to let marketers target prospective consumers not only by the search terms that people use, but also by their demographics and location.

Yahoo! to Update to Paid Search Platform

This past week Yahoo! announced their plans for implementing a new ad system, which is said to offer enhanced ease of use, advanced testing features, geo-targeting, and automated analytics. Yahoo!'s new ad system, scheduled to launch in the third quarter, is designed to let marketers target prospective consumers not only by the search terms that people use, but also by their demographics, location, and most importantly what they do on other areas of the Yahoo! network.

Yahoo! plans on leveraging its millions of registered users and broad network of services to improve its advertising sales. There are so many things a person can do on Yahoo!'s network with a Yahoo! ID, and with that there is so much the network can tell Yahoo! Search Marketing about each of its users. The new ad system will allow Yahoo! to analyze its users, based off of information found on its network, and then distribute advertisements according to each user's intent to buy products and services.

For instance, if a registered Yahoo! user were to search "things to do in Illinois", Yahoo! Search Marketing will now be able to consult with Yahoo! Travel, learn that this user is planning a trip to Chicago, and thus provide him/her with advertisements tailored to Chicago, Illinois.

My Thoughts

I believe this is an excellent idea, not to mention innovative, for 2 important reasons:

1. Online advertising is estimated at more than $30 billion a year and growing.

2. Yahoo! has more users than any website on the net.

This new kind of advertising targeting, if harnessed correctly, will outdo every other PPC advertising model available and deliver relevant advertising better than keyword searches ever could. Furthermore, we're no doubt seeing the beginning of what we can expect in the future from PPC search advertising and individualized / personalized searching. However, I would have thought it to come from Google, not Yahoo!. This should make things interesting.

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