Yahoo Launches Panama Ad System - AdSense Lookalike
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Apart from the geographical targeting option, the whole model is based on Google's PPC model, including the "quality index" which is simply how many click throughs you get. So with this model, Yahoo is aiming to deliver more quality results to the user -- but it is simply a quick lesson learned from Google, who originally hijacked Overture's (Yahoo's) auction based PPC model, paid for it (literally) and then improved on the ranking algorithm. According to Andrew Goodman, Data Control Center was simply a spreadsheet compared to Google's AdWords; now Yahoo is on par with AdWords, and some bloggers are rooting for it to beat Google.
But how feasible is that? AdCenter couldn't beat Google in search advertising. Yahoo is second after Google. The Avis of search is positioning itself to "take over the Internet" with its the restructuring it announced in early December. In case you missed it, Yahoo is dividing itself into three sections to reflect its core competencies as it tries to become more focused on searchers, publishers and their technology support (design and software engineering).
Google, however, should look over its shoulders; sometimes being number two does make people try harder. Still, even if Yahoo's Panama gives a more cost effective model with higher conversion rates, Google has all those eyeballs hooked. Despite the "search only" Yahoo search page, Google is still synonymous with search in the minds of hundreds of millions of users from San Jose to Shangai.
The real deal is, nobody knows exactly what Google has up its sleeve. The search giant changes everything quite frequently, and is not yet looking ruffled at all with the new generation of ad platforms. Google's stock crossed five hundred dollars per share price in November, a period where Yahoo's share prices dipped and sawed.
A $12 billion (and growing) industry is up for grabs. Advertisers want more ROI, but for now will put their money where the eyeballs are (Google and Yahoo) until an ad platform comes along that can address ad targeting, increase conversion rates, and reduce click fraud. Yahoo claims to be the most experienced when it comes to incidences of click fraud, and is more transparent in its policing. Yahoo also claims that Panama will improve conversion rates, but, like all good puddings, the proof is in the eating.
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