Yahoo announced on Wednesday the details about its system to buy and sell display advertising online, with the hope that the company can dominate the display ad market in the same way Google steers the search market.
Marilynn K. Yee/The New York Times
William Dean Singleton of MediaNews, left, Sue Decker, president of Yahoo, and Jerry Yang, chief of Yahoo, on Wednesday.
The new platform, called APT, will allow both publishers and advertisers to manage display advertising across the Web sites of several hundred newspapers across the country, along with Yahoo sites and large sites like eBayand WebMD.
At an event at Advertising Week in New York, executives said that the 800 or so members of Yahoo’s newspaper consortium would be using the system, formerly known as AMP, by the end of the year.
For advertisers, the new system would simplify the buying of display ads. Currently, advertisers typically buy display advertising from individual sites, or use ad networks, where they do not always control where their ads appear. If the platform develops as Yahoo promised, it would allow newspapers to make more money from online advertising. National advertisers do not want to make hundreds of tiny purchases, and the APT platform would make member newspapers’ Web site space available to national advertisers through one national purchase.
It would also let publishers use Yahoo’s targeting capabilities for ads on their sites, and use the demographic and behavioral information Yahoo has about users to show them appropriate ads. That “allows us to charge more” for the advertising space, said William Dean Singleton, the chief executive of the MediaNews Group, at the event.
Publishers can also allow Yahoo and other newspapers to sell their ad space as long as it meets a minimum price. For example, if a publisher knows his sales force can get $1 per thousand impressions on a certain ad unit, he might allow partners to sell it if they can get $1.25 or higher.
The San Jose Mercury News and The San Francisco Chronicle have been testing the system, and the next users will be Cox Newspapers, the MediaNews Group and Scripps Newspapers. In 2009, Yahoo will offer APT to advertisers, agencies and advertising networks…