Yahoo has finally pulled the trigger, launching a major component of the much-delayed new version of its online ad management platform, dubbed Panama, write the New York Times and Search Engine Land.
Panama is, in large part, an attempt by Yahoo to close the online-advertising revenue gap between it and Google. The system now uses a new algorithm that goes beyond just displaying ads from the highest bidder.
Panama will still use bid price as a factor - but now, like Google, will also give weight to ad quality and performance. That type of ranking approach is one part of why Google has been so successful.
The changes will be phased in so that advertisers do not see dramatic changes in their campaign performance and can make adjustments.
Yahoo hopes that Panama will increase it search market share - and help assuage growing investor concern - by attracting more advertisers and larger shares of online ad budgets.