Yahoo! has announced that its online marketing platform Panama, will now offer geo-targeting as part of its customisable package.

This means that for the first time the search engine can offer optimised results based on geographical locations for products and services.

The National Business Review writes that this will be especially welcome news to customers in Australia and New Zealand, as so far Panama has not been able to differentiate between the two countries.

Yahoo! search marketing Australia and New Zealand managing director Craig Wax told the newspaper that the development will make Yahoo! a better value proposition for online advertisers.

"One of the things we built into Panama was to enable a lot of interaction we want to make this as open as possible so other companies can take advantage of our platform," he said.

Advertisers in New Zealand will now be able to pick and choose from 16 segments of the country to better tailor their campaigns.

Yahoo! announced earlier this month that the launch date for its new quality-based ranking algorithm would be July 23rd.

According to Yahoo! the new system will allow for both quality and bid amount to influence positioning.

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