Yahoo’s Ad Overhaul Finally on Track

Just a few days after Microsoft unveiled a new and improved advertising feature, Yahoo has done the same.

For Google watchers, this raises a question of whether all the activity will force Google to do the same, perhaps as soon as the upcoming Google Press Day on May 10?

Also Monday, Yahoo unleashed the new search ad API. By licensing the API, developers can get to work now upgrading their own programs that interact with Yahoo’s soon-to-be sunset ad features.

Yahoo’s long-awaited new advertising system improves upon its older version by, among other things, letting advertisers and ad agencies target ads based on geography, help determine the costs of a particular ad campaign, and several other long-awaited features. For more on this from Yahoo’s perspective, click here.

Yahoo said Monday it’s nearly built the technology, and will soon begin adding it into its network. It’ll make the new ad system available to potential or existing advertisers sometime in the third quarter.

Both Yahoo and Microsoft are seeking any advantage over Google, as all three compete for the $13.8 billion expected to be spent this year on Internet and Internet search-related advertising. With their new ad features, Yahoo and Microsoft best Google in at least one category: geographically targeted ads.

But in other ways, the new Yahoo and Microsoft ad programs have features already in Google’s quiver.

Microsoft began making its new advertising feature available to anyone last week.