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Can Yahoo Make Display Ads Work More Like Search?

With SmartAds, Yahoo is tapping into user behavior to help advertisers target ads in a more personalized way. I?? skeptical whether consumers will ever, as Todd Teresi, Yahoo?? senior vice-president of display marketplaces, puts it, ??iew advertising to be as relevant as the content they??e looking at.?But as the Reuters story describes it, Yahoo could start to turn the tide of search ads that has catapulted Google far into the online advertising lead:

SmartAds takes such targeting methods a step further, allowing advertising agencies to create a template for ads with several variables, then compile those elements on the spot to suit a specific reader.

For example, a Web user who has shown an interest in certain car models and who logged on from a computer in Los Angeles could receive an ad for that vehicle that combines information on their nearest dealership and a real-time feed of inventory levels, Teresi said.

Teresi told MediaPost that tests showed two to three times the click-through rate on these ads. That’s the kind of boost Yahoo sorely needs in its comeback bid.

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