Yahoo Inc. ad software Panama is set to be fully operational in March, reports Bloomberg.

The company is hoping to use Panama to up the competitive ante against rival Google Inc. in the race for generating revenue from internet search.

Earlier this week Yahoo also announced it is reorganizing the company into three units and promoted Chief Financial Officer Susan Decker to head the Audience group.

"While this technology might not allow Yahoo to overtake Google, it may help narrow the gap,'' said Scott Kessler, an analyst at Standard & Poor's in New York, told Bloomberg.