Yahoo! is preparing to launch its contextual search marketing platform in the UK in the near future, it has emerged.

Panama, which has already been trialled in the US, was previewed at a conference in the UK last week.

And, according to a Yahoo! email quoted by e-consultancy, advertiser migration on the new sponsored search system will begin later this quarter.

"To help ensure we launch our new ranking model successfully, we have started running a limited test across our UK advertisers listings in which the display order of sponsored search listings in some keyword markets is based on factors other than bid," the company said.

According to wealth management firm UBS AG, Panama could boost Yahoo!’s revenue growth by 20 per cent in the second half of this year.

Yahoo! was sued by law firm Lerach Coughlin this month for allegedly making fraudulent claims over the reception of the ad platform.

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