Company outlines plans to introduce easy-to-use customer interface, new forecasting features, enhanced testing and targeting capabilities, and quality-based ranking model

Burbank, Calif. May 8, 2006 – Yahoo! Inc. (Nasdaq: YHOO), a leading global Internet company, today announced that it will begin rolling out a completely redesigned search advertising platform in the third quarter of this year to help businesses more easily connect to Yahoo!’s vast audience. In conjunction with the announcement, Yahoo! released the new search ad application program interfaces (APIs) designed to support the new platform. Replacing the original system that created the search advertising industry, Yahoo! new platform will enable marketers to more quickly launch search advertising campaigns across Yahoo! and its distribution network, and help achieve better overall return on their search advertising investment.

The new platform will be deployed on a country-by-country basis, with multiple phases within each market to help ensure a smooth transition for the hundreds of thousands of businesses that advertise with Yahoo! and to allow search engine marketers ample time to build upon Yahoo!’s new APIs. The first phase, building the core data platform and technologies, is near completion. The second phase will begin in the third quarter, when Yahoo! makes its new campaign management application and initial features accessible to advertisers. After the majority of advertisers have become familiar with the new features in a given market, Yahoo! will begin the third phase in that market, implementing a quality-based ranking model.

“We’ve designed our new platform to allow advertisers to reach Yahoo!’s audience through search as well as take advantage of advertising opportunities across all of our unique marketplaces, communications and social media assets,” said Steve Mitgang, Yahoo!’s senior vice president of advertising platforms and products. “Yahoo!’s new technologies and features should encourage more participation in search advertising by making it easier for marketers to understand the performance of their campaigns and experiment more frequently with the medium.”

The new campaign management application was developed based on input from thousands of advertisers worldwide. The initial version will focus on overall ease-of-use in launching and managing campaigns, and providing greater visibility into campaign performance, coupled with more control over how to improve performance The new features and capabilities that will be available in the first version of the application include:

§ Intuitive Control Panel – provides a simplified interface with user-tested navigation, allowing advertisers to easily understand their performance and providing them opportunities to modify or enhance campaigns every step of the way

§ Enhanced Geographic Targeting – leverages Yahoo!’s WhereonEarth technology, which draws from 15 years of geo-targeting expertise to enable Yahoo! to more accurately understand and match to user search intent (“Soho, NY” versus “Soho, London”) and colloquial terms (“restaurant near Fenway Park” is in central Boston, MA)

§ Fast Ad Activation – provides a streamlined content review process that allows advertisers to launch most new ad campaigns in less than 30 minutes

§ Ad Testing – supports automatic rotation of multiple versions of ads to determine the most effective, and, over time, displays the highest-performing ads more frequently

§ Visible Quality Index – scores ads based on quality, bid and other relevance variables, and will be made visible to advertisers to enable them to gauge and optimize placement when the quality-based ranking model is implemented

§ Share of Clicks Forecasting – displays data regarding the bid needed to achieve an estimated specific share of expected clicks, helping advertisers to set and reach traffic and conversion volume goals

§ Goal-Based Optimization – enables advertisers to let Yahoo! automatically help find the least expensive way to meet their business goals-defined as Cost Per Acquisition or Return on Ad Spend

§ Assists – shows advertisers the full value and contribution of every campaign by allowing them to see how ads drive both immediate and deferred conversions across multiple campaigns -- not just the last click that led to a conversion

“While the enhancements to our platform are dramatic and will provide immediate benefits to our advertisers, we ultimately rebuilt our system with the future in mind,” said Mitgang. “Once the first version of the core platform is in place, we will be able to move quickly to build in capabilities that ultimately will provide search advertisers deeper access to Yahoo!’s more than 420 million users, broader advertising capabilities, proven targeting expertise and global distribution network.”

Future versions of the new platform will include additional distribution options and audience targeting based on factors that could include demographic information or online behavior, as well as additional ad formats enhanced with graphics or rich media.

For more information about Yahoo!’s current search marketing offerings, please visit: http://searchmarketing.yahoo.co.uk.

Published on: 12:00AM on 9th May 2006