Yahoo! has announced a system to allow the marketing of products to be tailored specifically to customers’ needs.

The move is thought to be an attempt to keep up with recent developments at Google as the company establishes its position with the newly acquired advertising site DoubleClick Inc.

Yahoo’s SmartAds feature uses behavioural targeting to advertise to consumers based on their own searching and surfing habits, therefore proving more valuable to Yahoo! customers.

According to Todd Teresi, Yahoo’s senior vice president of display marketplaces, the new technology will provide marketers with a more accurate and customisable marketing message that they can deliver to consumers.

Greg Sterling, of Sterling Market Intelligence, said that behavioural targeting has proven itself to be effective due to the relevancy of ads to the individual.

He said: "With display advertising, it has been harder to duplicate that. Behavioural targeting is a strategy to close the response gap between traditional online display advertising and search."

Yahoo! also announced last week that their search marketing tool had been upgraded to allow customers to transfer keywords, streamline keyword selection and a receive online help with their advertising campaigns.

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