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Yahoo Sees Better Results With New Ad Platform

Project Panama's success is critical in Yahoo's effort to boost revenue and recapture market share from Google.

Thomas Claburn

February 23, 2007

1 Min Read

Yahoo's new search advertising system appears to be working. Since the introduction of Yahoo's new ad ranking model on February 5, the second phrase in the rollout of the company's Project Panama ad platform upgrade, Yahoo sites have seen better sponsored search click-through rates.

During the week ending February 11, 2007, the click-through rate for Yahoo-sponsored search ads rose 5% over the previous week, according to Internet metrics company comScore Networks. During the week ending February 18, 2007, the click-through rate showed rise of 9% over the baseline week of February 4, 2007.

"Yahoo's new search marketing ranking model is already having a positive impact on the click-through rates for Yahoo's search advertising," said James Lamberti, comScore senior vice president of media and search solutions, in a statement.

Project Panama's success is critical in Yahoo's effort to boost revenue and recapture search market share from Google.

Yahoo also saw more clicks directed at sponsored search ads, which generate more revenue than algorithmically generated ones. Sponsored clicks represented 10.6% and 11.1% of total click volume in the weeks ending February 11 and February 18, respectively, up from 10.1% during the week of February 4, according to comScore.

Last month, during a conference call detailing Yahoo's Q4 2006 revenue, CEO Terry Semel predicted that Yahoo would see the revenue impact of Project Panama in the second quarter of the year.

About the Author(s)

Thomas Claburn

Editor at Large, Enterprise Mobility

Thomas Claburn has been writing about business and technology since 1996, for publications such as New Architect, PC Computing, InformationWeek, Salon, Wired, and Ziff Davis Smart Business. Before that, he worked in film and television, having earned a not particularly useful master's degree in film production. He wrote the original treatment for 3DO's Killing Time, a short story that appeared in On Spec, and the screenplay for an independent film called The Hanged Man, which he would later direct. He's the author of a science fiction novel, Reflecting Fires, and a sadly neglected blog, Lot 49. His iPhone game, Blocfall, is available through the iTunes App Store. His wife is a talented jazz singer; he does not sing, which is for the best.

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