Yahoo! Tests New Search-Engine Ad Model
RBC analyst Jordan Rohan reports that Yahoo! has released a test version of its new search monetization in Scandinavia and will expand the rollout to the U.K. in July.
Codenamed “Project Panama,” Yahoo’s new model will be similar to that of Google (nasdaq: GOOG - news - people ), which ranks search-engine ads by both the amount advertisers pay for keywords and the relevance of the ad. The Google-like algorithm should result in higher click-through rates than its older model that ranked ads only by the amount paid for keywords.
Yahoo! (nasdaq: YHOO - news - people ) has notified certain high-volume search buyers of the upcoming changes to its sponsored search monetization algorithm and a widespread announcement should be made in the coming weeks, possibly at the AdTech expo.
Rohan maintains his “outperform” rating and price target of $42 on Yahoo! stock, and says an announcement of the U.K. beta rollout could positively affect Yahoo shares. A full “Project Panama” rollout in the United States and Japan will likely happen in late 2006 or early 2007.
Yahoo! Tests New Search-Engine Ad Model 
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