Tuesday, February 27, 2007

Yahoo Ad-Ranking Tool Clicking

"Web surfers are clicking on Yahoo Inc. search-related advertisements with increasing frequency following the introduction of a new ad-ranking system, a boost to the Internet company's hopes of improving its lagging revenue growth.

According to a report from research firm comScore Networks Inc., Yahoo's Feb. 5 launch of a new method for ranking search ads -- a system like that used by rival Google Inc. that rewards ad quality in addition to the ad's price -- has drawn a quick and positive response from consumers.

ComScore said the rate at which consumers clicked on Yahoo search ads rose 5% in the week ended Feb. 11 and 9% the next week, compared with the week ended Feb. 4. The improvement is important because Yahoo only collects money on ads, the price of which are set in online keyword auctions, when a consumer clicks on the ad and visits the advertiser's Web site."

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