Yahoo’s Search Retargeting tool allows advertisers to offer display ads to users based on searches for particular keywords on Yahoo.

The company’s Enhanced Retargeting tool offers personalized display ads to users who have recently visited an advertiser’s site. Yahoo says in a recent trial, an online travel company saw a 230 percent increase in total bookings and a 651 percent increase in click-through rate using its Enhanced Retargeting tool.

Michael Walrath, Yahoo

Yahoo Search Marketing will also introduce Enhanced Targeting that allows advertisers to offer ads based on the time of day and user demographics. The Enhanced Targeting tool is expected to launch in March.

Yahoo’s newest advertising offerings comes on the heels of its Rich Ads in Search initiative announced last week, that allows advertisers to add video, images and custom search boxes to their ads. The program is currently available to advertisers by invitation only.

"As the economy continues to put pressure on advertising budgets, marketers are looking for increased accountability for every dollar they spend," said Michael Walrath, senior vice president, Advertising Marketplaces Group, Yahoo!.

"Yahoo!’s new targeting products significantly improve the ability for search and display advertisers to reach their target audience, providing increased efficiency and accountability."

Yahoo Exchanges $680 Million For Right Media

Right Media will continue to operate as an independent division of Yahoo after the deal becomes finalized. Michael Walrath, CEO of Right Media, said at the Right Media blog that Yahoo will not receive any unfair advantage in their Exchange.

"A level playing field is one of the foundations of the Exchange and its success – it remains level," he wrote.

Yahoo provided several reasons on how participants in the Right Media Exchange will benefit from the acquisition, and from Yahoo’s increased participation as a buyer and seller in the Exchange:

• Advertisers will have greater inventory and audience options from Yahoo! and other participants in this exchange, as well as increased control and visibility into the buying process.
• Publishers will be able to bundle their own ad inventory with Yahoo!’s inventory and the exchange’s inventory – thereby boosting demand and generating the highest returns for each ad placement.
• Advertising networks will reap the same benefits as advertisers and publishers, and additionally, the exchange will benefit those ad networks with unique value propositions, giving them an opportunity to compete with the largest players, thanks to reduced friction and increased transparency.

Terry Semel posted a subtle dig at the Google/Double Click deal on Yahoo’s official blog, in talking about the deal.

"We think supply and demand should be regulated by the marketplace, not a closed platform," he said. "We think our open approach is a clear differentiator from others in the industry and will provide significant benefits to publishers and advertisers.

"This acquisition is an important step in our long-term vision to build the industry’s leading advertising and publisher ecosystem."