New search platform designed to better web experience
Jim Jamieson
Province
In what industry observers are calling one of the most important moves in its history, Internet company Yahoo! is launching Yahoo! Search Marketing (YSM), as well as a new search platform formerly known as Panama.
The intent, say analysts, is to better compete with the industry’s big gorilla, Google, in the lucrative search marketing business — which in Canada alone is currently worth $268 million but is expected to grow to $1 billion in sales by 2010.
Search marketing is the business by which firms can place relevant ads on the right-hand side of web pages in response to search queries. Yahoo! has used a so-called “bid to position” model, where companies that pay the most are ranked first. Search companies are paid a few pennies every time a user clicks through on an ad.
YSM will feature a new model — similar to that used by Google — that uses bids but also ad quality and other considerations to place a ranking on search results webpages.
The idea is the make the search experience better for the consumer, which should also benefit the retailer.
“This is a much more robust opportunity for companies to effectively market their products and services,” said Yahoo! Canada general manager Kerry Munro yesterday.
“They segment themselves broadly, if they want to advertise in the rest of Canada and in the U.S. or can separate themselves to a particular locale, whether it’s Vancouver or Toronto.”
Munro said the new platform will offer new efficiencies to small business owners.
“For someone whose business is not on the Internet, it allows them to do that very effectively, to market products and services and adjust spending patterns in real time to suit budgets, opportunities or promotions.”
© The Vancouver Province 2007
