The Panama project will bring Yahoo hundreds of millions
The introduction of an advertising platform on the Yahoo portal, codenamed Project Panama, is planned in July-September 2006. Work on the project lasted two years and required tens of millions of dollars. But the investment will pay off in full, confident in Yahoo.
When the advertising platform is integrated with Yahoo, users are unlikely to notice the difference. Normal search results will not change at all. But contextual advertising should be a little more accurate, more interesting. This "little bit" will allow you to raise the CTR and bring Yahoo hundreds of millions of dollars in additional profits.
According to independent analysts from RBC Capital Markets, immediately after the introduction of the new advertising platform, Yahoo will be able to increase advertising revenue by 20%, which will bring about $ 125 million of additional profit in the first quarter and about $ 600 million during the year. It is difficult to overestimate the importance of software that generates such income.
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The increase in CTR will be possible due to the fact that the Panama project has implemented new algorithms for assessing the relevance of contextual advertising and the positions of each ad in the list. First place in the list should not be occupied by the most expensive ads, but by the most relevant ones. They will have more conversions and they will bring more profit. The first company that implemented such algorithms was Google . Yahoo has spent years developing a similar model.
The new advertising platform also has higher stability and is designed for higher loads. The previous system has worked continuously since 2003, when Yahoo bought its developer, Overture , for $ 1.6 billion.
Among the new abilities of the Panama project is an indication of the geographical region for displaying ads, as well as detailed statistics for the advertiser on how his ads were displayed (Quality Index). In addition, before the start of an advertising campaign, the system demonstrates how many impressions and how many transitions a given advertisement can generate at a given price, which will allow marketers to carry out preliminary calculations and planning. Panama will also shorten the period between the submission of advertising and the beginning of its display to a few minutes.
All these functions will appear immediately after the introduction of "Panama", but the change in the ranking system will take place later (exactly when it is still unknown).
Anyway, Yahoo realizes that it will have to compete not only with Google, but also with Microsoft , which developed and recently introduced on the MSN portal the third-generation advertising platform Microsoft adCenter. There, besides the geographical region, the advertiser can also indicate the sex, age and other characteristics of the target audience. According to its characteristics, Microsoft adCenter is better than Google AdWords and better than the Panama project. The problem is that the MSN search engine is very inferior in popularity to its competitors Yahoo and Google.
When the advertising platform is integrated with Yahoo, users are unlikely to notice the difference. Normal search results will not change at all. But contextual advertising should be a little more accurate, more interesting. This "little bit" will allow you to raise the CTR and bring Yahoo hundreds of millions of dollars in additional profits.
According to independent analysts from RBC Capital Markets, immediately after the introduction of the new advertising platform, Yahoo will be able to increase advertising revenue by 20%, which will bring about $ 125 million of additional profit in the first quarter and about $ 600 million during the year. It is difficult to overestimate the importance of software that generates such income.
')
The increase in CTR will be possible due to the fact that the Panama project has implemented new algorithms for assessing the relevance of contextual advertising and the positions of each ad in the list. First place in the list should not be occupied by the most expensive ads, but by the most relevant ones. They will have more conversions and they will bring more profit. The first company that implemented such algorithms was Google . Yahoo has spent years developing a similar model.
The new advertising platform also has higher stability and is designed for higher loads. The previous system has worked continuously since 2003, when Yahoo bought its developer, Overture , for $ 1.6 billion.
Among the new abilities of the Panama project is an indication of the geographical region for displaying ads, as well as detailed statistics for the advertiser on how his ads were displayed (Quality Index). In addition, before the start of an advertising campaign, the system demonstrates how many impressions and how many transitions a given advertisement can generate at a given price, which will allow marketers to carry out preliminary calculations and planning. Panama will also shorten the period between the submission of advertising and the beginning of its display to a few minutes.
All these functions will appear immediately after the introduction of "Panama", but the change in the ranking system will take place later (exactly when it is still unknown).
Anyway, Yahoo realizes that it will have to compete not only with Google, but also with Microsoft , which developed and recently introduced on the MSN portal the third-generation advertising platform Microsoft adCenter. There, besides the geographical region, the advertiser can also indicate the sex, age and other characteristics of the target audience. According to its characteristics, Microsoft adCenter is better than Google AdWords and better than the Panama project. The problem is that the MSN search engine is very inferior in popularity to its competitors Yahoo and Google.
Source: https://habr.com/ru/post/4045/
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