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Yahoo!'s new ad platform: responses around the net

If you look at Yahoo!'s 10-Q report you'll notice that 88% of Yahoo!'s income was derived from its advertising network, the second largest online. Thus, if you are interested in Yahoo!'s stock price, you have to be interested in their main source of income, which means tracking how their ad network is doing.

The big news of the week, covered by MSNBC and the Wall Street Journal among others, is Yahoo!'s overhaul of the Yahoo! Publishers Network. This is one of the crown jewels of Yahoo!. There are a lot of changes, many welcome new abilities, and some changes not welcomed, such as the dropping of suspect sites that host the ads that might be using click fraud to collect money from Yahoo!, and also putting Yahoo! in a compromising situation.

A round up of responses to the new design from some who've gotten a sneak peek, and some who're reading the general press release:

Continue reading Yahoo!'s new ad platform: responses around the net

Yahoo! already making changes to combat click fraud

Yahoo! is moving quickly to cut damage to its online advertising reputation by cutting accounts with no 'quality traffic' that are using their online ads via the Yahoo Publishers Network (YPN), 'quality traffic' no doubt a cute euphemism for fraudulent clicks.

Yahoo! has posted a statement on their blog about this, and professional blogger Darren Rowe points out that many of YPN's users are disgruntled about this as they may be getting unfairly dropped.

It's a damned if they do/damned if they don't situation. Yahoo! has to show  responsiveness to fraudulent click claims, while also not dropping too many legitimate sites that fall in between the cracks.

MySpace and Yahoo! text ads: not friends

myspaceMySpace site publishers who run text ads through the Yahoo Publishing Network got a shock  last week when many of their accounts were suspended due to "poor traffic quality," reports text advertising guru JenSense (and referring to this Digital Point forum). The major problem, it seems, is that MySpace clickthrough rates are low and not very profitable for either Yahoo! or Google, which currently offers its AdSense service to MySpace users.

At only $0.10 CPM according to a recent NY Times article, MySpace users might not be all that attractive for Google, either. The question remains: who will monetize MySpace users, if not Google and Yahoo!? Surely there is some way of creating profit off the millions of MySpace addicts. Evidently, it was too costly for Yahoo.

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Last updated: November 11, 2009: 05:28 PM

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