Panama Puts Yahoo Back in the Race
Tuesday, February 27th, 2007By Andy Beal
Source: Businessweek.com
If you’ve watched any professional motor sport, you’ve likely witnessed the following scenario. The early leader loses ground to other racers as his car’s tires begin wearing out or the engine starts smoking. A pit stop will initially cause the driver to fall even further behind. But ultimately the time taken under the care of mechanics helps the driver pull back into the lead. If the Web’s search engine industry is the race track, Yahoo has just taken a timely pit stop to try and win back ground lost against the new leader, Google.
On Feb. 5, Yahoo! (YHOO) started moving all of its paid search advertisers over to a new ranking model, informally known as “Panama.” The aim: Gain some much-needed momentum on Google’s more widely used AdWords platform.
It took Yahoo many months to create the new model, effectively rebuilding the system it acquired with the $1.6 billion purchase of Overture Services. Although Panama is just getting off the ground, there’s reason to believe this time in the pit has done Yahoo good (more…)