Yahoo! Search Marketing is a keyword-based “Pay per Click” or “Sponsored Search” Internet Advertising Service provided by Yahoo. Yahoo! Search Marketing Agency also provides services like Geo-Targeting, Ad Testing, Campaign Budgeting, and Campaign Scheduling.
Basically, Yahoo! Search Engine Marketing was an augmentation after procuring Overture Services, Inc (formerly Goto.com).
Goto.com was an idealab spinoff and one of the first companies to sensationally accomplish the Pay-for-Placement search services overcoming all previous attempts that could not be successfully established.
“Panama”, Yahoo!’s latest program launched in early 2007 replaced the old techniques to what Google Adwords employed to rank advertisements against search results. The basic formula is Bid * Quality Score = Ad Rank although the real principle is kept a secret.
Quality scores are Ad’s CTR (Click through Rates) based on Ads creative relevance (Quality Index), and the landing page quality which is utilized by the ads sent to the user.