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February 21, 2009

Search Engine MarketingYahoo Introduces “Rich Ads in Search”

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By Marian Short

In a bid to reclaim a modicum of search advertising market share from the reigning king, Google, Yahoo is piloting its “Rich Ads in Search” to a select handful of companies, including Pepsi and Home Depot. Drawing on Yahoo’s marketing strength of display ads, the new program will incorporate visuals and video into the text-based realm of paid search advertisements. Naturally Yahoo touted the more visually engaging nature of its Rich Ads, while a Mashable post on the subject announced: “Yahoo returns to its Roots: Annoying Ads.”

The New York Times noted a wide variance in ad performance between text-only and Rich Ads: while Yahoo said click-through rates for some advertisers jumped by up to 25 percent after they adopted search ads with visuals, ad agency Razorfish reported its clients experienced a 5-10 percent jump.
Clients will be charged a monthly fee for Rich Ads, which is a departure from the pay-per-click/pay-per-impressions billing model.

Whether Rich Ads result in more conversions, or merely more visual clutter, it would take a great feat for Yahoo to catch up with Google – their search market shares are 10.5 percent and to 67.7 percent respectively. Read more from the NYT here.

Posted by staff at February 21, 2009 12:33 PM

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