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February 26, 2007
Yahoo!'s Panama Makes Strong Debut

ComScore Networks has released results of a study tracking the success of Yahoo!'s new search advertising system Project Panama.

Since making its debut Feb. 5, Panama is being credited with an uptick in Yahoo's clickthrough rates for sponsored search ads.

ComScore's study affirmed that fact by tracking the online behavior of 1 million internet users and determining that with the rollout of Panama, the new ranking model was responsible for a 5 percent increase in clickthroughs for the week ending Feb. 11, and a 9 percent increase for the week ending Feb. 18.

"ComScore data show that the recent introduction of Yahoo's new search marketing ranking model is already having a positive impact on the clickthrough rates for Yahoo's search advertising," said James Lamberti, comScore senior vice president of media and search solutions.

According to comScore, Panama has also created a shift in the composition of total click volume from algorithmic to sponsored.

"The sponsored click composition metric (i.e. sponsored clicks as a percentage of total clicks) is critical in understanding Yahoo!'s success in improving both monetization and user experience. Search data show positive gains in this area, with sponsored clicks representing 10.6 percent and 11.1 percent of total click volume in the weeks ending Feb. 11 and Feb. 18, respectively. These data represent increases of 0.5 and 1.0 points in the weeks following the new ranking model launch."

ComScore will continue to monitor Panama and plans to issue additional analysis in the coming months.


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