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May 15, 2006 12:46 PM PDT

Yahoo to show off new ad system

by Elinor Mills
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Yahoo is expected to show off highlights of its new online advertising system at the company's analyst day on Wednesday in San Francisco, a spokeswoman said on Monday. Yahoo hopes the pay-per-click system, to be released in the third quarter, will boost the company's take of the estimated $5 billion plus annual keyword search ad market.

A few weeks ago, Microsoft unveiled its new AdCenter system, which features highly targeted services based on demographics such as the age of prospective customers. Yahoo's new system is expected to allow advertisers to set ad positions based on more than just bid price--also, for example, letting them use factors such as click-through rate, like Google.

Elinor Mills covers Internet security and privacy. She joined CNET News in 2005 after working as a foreign correspondent for Reuters in Portugal and writing for The Industry Standard, the IDG News Service, and the Associated Press. E-mail Elinor.
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