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July 21, 2006

Yahoo Delay's Search Marketing Upgrade

Yahoo’s search marketing upgrade, code-named Project Panama, won’t arrive until at least the end of the year according to Yahoo Chairman and CEO, Terry Semel.

The upgrade is expected to bring Yahoo's pay per click model more in line with Google's. With Panama ads placement will be based on price and relevancy of ad. Currently, Yahoo places a paid ad solely based on the amount you are willing to pay for the keyword. The new algorithm will be similar to how Google AdWords works.

Yahoo had planned to release the upgrade in the third quarter, but Semel said during the company’s quarterly earnings call on Tuesday that the company was delaying the release of Panama to prevent disruption in ad purchasing and management during the holiday season.

"We think this is the right decision for ensuring the most successful commercial launch possible," he said, adding that we should expect to start using the upgrade in 2007.

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