Details of Current Service
GoTo.com's and Overture's original services provided only a list of search results ordered according to the bid amounts paid by the respective advertisers. Yahoo!'s Search Marketing's latest iteration, code named Panama, was released early in 2007. It replaced the old formula with one more similar to what Google AdWords uses to rank advertisements against search results. The exact formula is secret, but it is basically Bid * Quality Score = Ad Rank, where quality score is based on the ad's CTR (click-through-rate), the relevance of the ad to the creative (known as "Quality Index"), and the 'quality' of the landing page the ad is sending the user to.
Yahoo! Search Marketing also provides features such as Geotargeting, Ad Testing, Campaign Budgeting, and Campaign scheduling. It also supports a RIA application which allows larger customers to manage their Yahoo! Search Marketing campaigns from the desktop.
Read more about this topic: Yahoo! Search Marketing
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