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Article Type:: Analysis

Yahoo guns for Google

Article Date: Jul 17 2006

Yahoo! is upping the ante in its war with Google by unveiling a major overhaul of its ad system. Search engine users will notice very little difference, but its new search-advertising software, Panama, enables ad buyers to test for the most effective adverts, giving a greater understanding of campaign performance and costs involved.

Yahoo!'s previous YSM (Yahoo! Search Marketing) system had been criticised for its complexity and suffered severe disruptions in the past, crashing for several days during 2005. This meant paying customers could not buy ads or change existing accounts – effectively handing the business to rival Google.

Although Yahoo! is yet to publish forecast figures, the firm is expected to increase search-advertising revenue by at least 20 per cent straight away.

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