Forbes is reporting that Yahoo has released a test version of its new paid search mode, codenamed “Project Panama”, which includes a “relevance” component similar to Google’s.
Analysts predict a switch to this model will result in greater click-thrus for Yahoo and hence, greater revenue. It will be interesting to see how Google reacts to this. They settled a PPC patent dispute with Yahoo before going public – but can Google claim they own the patent for a relevance-based component. I guess the big question is what is this “relevance” attribute and how similar is this to Google’s algo.