Search giant Yahoo! has just introduced a new platform model across the US online advertising network. The project, a huge component of Yahoo!'s company-wide search initiative, "Panama", will consider both bid amount and ad quality (including user feedback) to determine an ad's run in search results.
The new ranking model - which hosts sponsored search and local advertising, as well as portals into the product, travel and directory sectors - is designed to help both search users and advertisers by generating better search results by means of higher quality search ads. This means that when users search on Yahoo!, they'll see an improved search results page with more relevant ads, which will in turn make it easier for them to find exactly what they're looking for. And with better search ads comes an increased number of potential customers, ultimately benefiting advertisers.
The new ranking system is a huge step for Yahoo! and the search engine's shares rose by seven per cent two weeks ago as investors anticipated its success. After all, instead of paying for placement, advertisers will now be rewarded for making the effort to create more relevant ads. Moreover, consumers will get a faster, more rewarding search experience - an undeniably vital element of the market. Yahoo! is even providing various resources on their blog and within the core application of the platform to help search users and advertisers make the big transition.
So, it seems it's out with the old and in with the new for Yahoo!. But just how long will their new project remain "new" before they roll out with further improvements? Our guess is not very long. After all, Yahoo! is always turning rocks to find the best innovations that will benefit both their advertisers and search users, as well as help to close the gap between itself and the world's leading search engine, Google.
