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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.
Any takers?
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2 comments on “Yahoo Tests Similar Ad Model to Google”
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Matt Says:
April 7th, 2006 at 12:38 am
I think that Yahoo just needs to give much better search results, before they try any hair-brained schemes. For my friends and myself, the only search engine that matters is Google! Google delivers several times more search traffic to our sites than all of the the other search engines combined. I think if Yahoo concentrated on giving better search relevance, then they may gain some traction in gaining some of their long lost glory.
Brent Franson Says:
April 7th, 2006 at 6:00 pm
It is about time, I hate the PPC model used by Overture/YSMS. It is crazy that they do not reward performance. With Google we are always striving to make their paid results more relevant because it increases our CTR which decreases our CPC while maintaining a similar or higher position. The straight bidding game is old and outdated.