Monday February 5th, 2007, will be a day that goes down in search engine history. At 3pm PST today, Yahoo will bring together 30 to 40 engineers and start migrating the old Overture pay-per-click platform over to the new “Panama” model. Its future success or failure will depend on how well the new platform is received.
Thousands of advertisers, and billions of dollars in ad spending, will be watched closely, as Yahoo finally moves from the pure “highest bidder wins” model, to the “bid plus quality” model. By making this switch, Yahoo hopes to increase the average revenue per click from 2.5/3 cents to something closer to Google’s 4.5/5 cents.
As successful switch could mean the difference between Yahoo’s road to a comeback, or instead, further languishing behind Google – and facing a strong challenge from Microsoft’s adCenter.