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Google's List of Competitors Grows.
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Author: Morrissey, Brian
Section: Interactive
| Google's List of Competitors Grows |
Yahoo! to test behavioral targeting cost-per-click advertising network
Dateline: NEW YORK
While Google still
reigns supreme in search, its contextual advertising network has
increased competition from old rivals and publishers themselves.
Yahoo has begun
testing a new cost-per-click ad network that takes a different approach
than Google's AdSense contextual network, which relies on scanning a
Web page's content to display relevant ads. Yahoo! has partnered with
Revenue Science, a Bellevue, Wash., behavioral targeting company, to
quietly test a cost-per-click ad system that shows text ads based on
user profiles.
"There's a big
portion of the Web that's a contextual desert," said Omar Tawakol,
Revenue Science's svp of marketing, adding that targeting site behavior
often yields better results. "There's a ton of sites on the Web like
entertainment, blogging and social networking sites â€" all those sites
are better served by focusing on the user, not what's on the page."
The experiment is
part of a Yahoo! push to build a credible competitor to the 2-year-old
AdSense system. Next month Yahoo! plans to launch the Yahoo! Publisher
contextual ad network to allow small Web sites to sign up. A Yahoo! rep
said it would include safeguards against click fraud, a common
complaint of AdSense advertisers. It is not expected to include
behavioral targeting at launch.
Google has focused on
evolving its vast reach across the Web through AdSense's text listings
into a full-fledged ad network, recently adding impression-priced
graphical ads.
Yet the vast reach of
Google's network has caused some higher-profile publishers to feel
slighted. Newsday and The Houston Chronicle have replaced AdSense with
their own text-ad systems. Michael Yavonditte, CEO of New York-based
Quigo, which provides the back-end for Newsday's and The Chronicle's
systems, predicts more Web publishers will follow this model.
"Over time, just as
they built their own classified business, these publishers are going to
build their own CPC marketplaces," he said.
~~~~~~~~ By Brian Morrissey
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