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Yahoo! launches AdLabs

Feb 07, 2011
After revealing that display advertising is boosting Yahoo!'s otherwise flagging financials, the web portal has launched AdLabs - a service that will reportedly combine success-measuring ad metrics and science to stimulate innovation in the online advertising sphere.

Tech news site Web Pro News reports the newly launched Yahoo! AdLabs offering will foster innovation in digital advertising by applying metrics, scientific research and data analysis to a cache of Yahoo! stored ad campaigns - allowing the web portal's ad-analysing boffins to develop insight into how to better drive the success of online advertising.

"The AdLabs team will mine Yahoo!'s vast data repository of campaigns and associated metrics to inform both thought leadership and product innovation," a Yahoo! spokesperson told Web Pro News, adding: "The team will also work directly with key advertising and data partners in a prospective way to test of the insights uncovered.

"Yahoo! Labs has been instrumental in developing Yahoo!'s advertising products, laying a foundation of scientific research and innovative data analysis, supporting everything from the world's most advanced display advertising marketplace to the world's most effective ad targeting capabilities.

The spokesman said the company hoped to build on previous successes and address the needs of marketers to implement effective campaigns.

"Successful campaigns change perceptions about brands and increase sales. Marketers need new, breakthrough, scientifically-tested methodologies to drive these important metrics.

"Yahoo! has the scale to measure the impact of many campaigns and the breadth of expertise to produce the new models and innovations that will move the digital advertising industry forward."

The multifaceted web outlet's change of focus from search to advertising, seems part of CEO Carol Bartz's strategy to stealthily help Yahoo! reverse its recent financial misfortunes.

The first of many AdLabs findings to come, Yahoo! imparted some recent retail ad study results to the tech news site, revealing that hyper-local display ad targeting generated an impressive five times return on ad spend or more, as local customers comprised just 10.6 per cent of an ad-viewing audience but generated 56 per cent of ad-generated revenue.


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