Yahoo Native

Yahoo! Native (formerly known as Yahoo! Advertising, Yahoo! Search Marketing and Yahoo!
Gemini) is a native "Pay per click" Internet advertising service provided by Yahoo.

Yahoo! Native

Formerly Overture (2001–

2003)
YahooSearchAd Yahoo! Search
Marketing (2003–
Yahoo began offering this service after
2009)
acquiring Overture Services, Inc. The current Yahoo! Advertising
offering of Yahoo Native launched in 2014 as (2009–2014)
Yahoo! Gemini
Yahoo! Gemini. It handles advertising for both
(2014–2017)
Yahoo and AOL properties, as well as other
Company type subsidiary
media outlets.
Industry Internet
History
Founded 1997

Headquarters Sunnyvale, California,

GoTo and Overture
U.S.

Parent Yahoo!

Website gemini.yahoo.com (h
ttps://gemini.yahoo.c
om/advertiser/hom
e)

GoTo main page in 1998

GoTo (not to be confused with Go.com or Go2Net) was an Idealab spin off and was the first
company to successfully provide a pay-for-placement search service.[1][2][3] It started off with the
purchase of World Wide Web Worm (WWWW), one of the oldest search engines.[4] GoTo is
considered to have been an influential pioneer of paid search.[5][6]

In February 1998, GoTo offered advertisers the option of bidding on how much they would be
willing to pay to appear at the top of results in response to specific searches. The bid amount
was paid by the advertiser to GoTo every time a searcher clicked on a link to the advertiser's
website. By July 1998, advertisers were paying anything up to a dollar per click. In June 1999,
GoTo launched a tool set direct traffic centre (dtc) to enable advertisers access to keywords and
real time bidding.

GoTo's business model was based on the idea that its paid listings would make it more relevant
than other services, especially for general searches, and web sites that pay more are probably
better sites. A similar service had been offered by Open Text in 1996, but this precipitated
outcries and bad publicity because searchers at the time did not want the search process more
commercialized.

In contrast, GoTo's pay-for-placement model was very successful. Commenters theorized that
the Internet had matured in the intervening two years, and this type of economic models were
more acceptable since the web was no longer just a place for academic research, but also a
place for buying products. GoTo founder Bill Gross speculated at the launch that GoTo would
succeed because, as a relatively new service, it had no reputation to taint with paid listings, unlike
Open Text.

On October 8, 2001, GoTo renamed itself Overture Services, Inc.[7] GoTo's chief operating officer
Jaynie Studenmund, mother of fallen U.S. soldier Scott Studenmund,[8] said, "We also felt it was a
sophisticated enough name, in case our products expand."

Through partnerships, Overture enabled portals such as MSN and Yahoo to monetize the
hundreds of millions of web searches made each day on their sites. Indeed, these partnerships
proved highly lucrative, and in a period otherwise marked by dot-com failures, Overture became a
substantial profit driver for portals like Yahoo[9]

This success enabled Overture to acquire web sites such as AltaVista and AlltheWeb.[10]

Acquisition of Overture by Yahoo!

On October 7, 2003, Overture was acquired by its biggest customer, Yahoo!, for $1.63
billion.[11][10] The old brand name of Overture was phased out as Yahoo rebranded many of its
products under the Yahoo name. The exception to this was in Japan and Korea where the local
businesses continued to use the Overture brand.

Panama

Panama was an online advertising platform created by Yahoo!, launched on 5 February 2007.[12]
Panama was Yahoo's effort to close the wide gap with Google in the race for search advertising
dollars, a fast-growing business then dominated by Google, which is now also dominated by
Google. Customers with accounts already on Yahoo! were transferred to the new system over the
following few months. Yahoo! inherited the search advertising business when it purchased
Overture (previously named Goto.com). Until Panama, Yahoo! search continued to operate the
original simplistic algorithm which ranked text ads according to how much advertisers bid for the
keyword searched by the user. Meanwhile, Google operates under a more sophisticated model,
which ranks paid ads on the basis of bid price as well as prior click-through rates. This
improvement generally produces higher click through rates (hence higher revenues) for the
search engine. This also allowed Yahoo to control the pricing of ad auctions rather than having
the auctions operate at market value.

For example, an ambulance-chasing attorney bidding for the keywords "back pain" would likely
get a lower clickthrough rate than the keyword "physiotherapist", regardless of what the two
parties bid per click. An algorithm that eventually de-prioritizes the attorney's ad is better for the
search engine (in terms of revenue produced) and the user (more relevant ads).

Key players in the Panama project were Brian Acton, David Henke & Qi Lu.

Features

The platform provided advertisers with a digital dashboard where they can manage their
marketing campaigns, aim ads geographically, and test their effectiveness. It included interactive
tools that suggest to advertisers what to bid based on their budget and the number of users they
want to attract.[13]

Yahoo Gemini

Logo (2009-2013)

Logo (2013-2014 Gemini launch)

During the tenure of Marissa Mayer as Yahoo's CEO she started a new advertising platform
project under the name Gemini. The goal was to build a native advertising solution, where the ads
take on the format of the content they accompany.[14]

The so-called "quality index" gave advertisers a sense of how the system would rank an ad along
with sophisticated analytical tools that gave advertisers insights on why certain campaigns had
been effective.
Patent litigation

In May 1999, GoTo filed a patent application titled "System and method for influencing a position
on a search result list generated by a computer network search engine",[15] which was granted as
in July 2001. A related patent has also been granted in Australia and other patent applications
remain pending.

Prior to its acquisition by Yahoo, Overture initiated infringement proceedings under this patent
against FindWhat.com in January 2002 and Google in April 2002.[16]

The lawsuit against Google related to its AdWords service. In February 2002, Google introduced a
service called AdWords Select that allowed marketers to bid for higher placement in marked
sections - a tactic that had some similarities to Overture's search-listing auctions.

Following Yahoo's acquisition of Overture, the lawsuit was settled with Google agreeing to issue
2.7 million shares of common stock to Yahoo in exchange for a perpetual license.[17]

Trademark issues

In 2013, the Tenth Circuit Court of Appeals held in Lens.com, Inc. v. 1-800 Contacts, Inc. that
online contact lens seller Lens.com did not commit trademark infringement when it purchased
Yahoo and Google AdWords search advertisements using competitor 1-800 Contacts' federally
registered 1800 CONTACTS trademark as a keyword. In August 2016, the Federal Trade
Commission filed an administrative complaint against 1-800 Contacts alleging, among other
things, that its search advertising trademark enforcement practices have unreasonably
restrained competition in violation of the FTC Act. 1-800 Contacts has denied all wrongdoing and
was scheduled to appear before an FTC administrative law judge in April 2017.[18]

Adware partnership

In April 2003, Overture announced a three-year partnership with Gator Corporation, (now Claria
Corporation) an adware company. Under the partnership, Gator's software monitored a web-
user's activity on web sites and search engines (even sites such as Google that are not affiliated
with Overture) and grabbed search keywords. These keywords were submitted to the Overture
search engine. As a result, advertisers who paid for listings in Overture found their products
advertised through Gator's Search Scout software, even if they wanted nothing to do with Gator.
Overture faced a great deal of criticism for entering into this partnership.[19]

When Yahoo acquired Overture, the Claria software impaired the operation of Yahoo's services.
For example, when a user with a Claria application installed used Yahoo Search, they received a
standard set of Yahoo results with sponsored listings at the top supplied by Overture. The user
would then receive a full-screen pop-under window from Search Scout. Since Search Scout uses
Overture's paid listings as well, Claria's window has exactly the same listings as the Yahoo
search results.[20]

Subsequently, Yahoo came out with the Yahoo Toolbar, which allows users to remove adware and
spyware from their system. The toolbar affected the operation of Claria's software and may have
put stress on the relationship between the two companies.[21]

See also

Companies portal

Ad serving

Google AdWords

List of search engines

Microsoft adCenter

Pay per click

Search engine marketing

References

1. GoTo Going Strong (http://searchenginewatch.com/showPage.html?page=2166331)

Archived (https://web.archive.org/web/20061021112602/http://searchenginewatch.com/sho
wPage.html?page=2166331) 2006-10-21 at the Wayback Machine, Danny Sullivan, The
Search Engine Report, July 1, 1998[1] (https://woya.co.uk/blog/the-benefit-of-an-seo-compe
titor-analysis/)

2. Pay-for-placement gets another shot (https://archive.today/20121208124417/http://news.c

om.com/Pay-for-placement+gets+another+shot/2100-1023_3-208309.html) , Jeff Pelline,
CNET News.com, February 19, 1998

3. Who Will GoTo.com?, Ken Glaser, OnlinePress.com, Feb. 20, 1998

4. "GoTo: The Forgotten Search Engine" (https://thehistoryoftheweb.com/goto-forgotten-searc

h-engine/) . 1998-02-19. Archived (https://web.archive.org/web/20190120043042/https://t
hehistoryoftheweb.com/goto-forgotten-search-engine/) from the original on 2019-01-20.
Retrieved 2019-01-19.
 5. "History of Search Engines: From 1945 to Google Today" (http://www.searchenginehistory.c
om/) . Archived (https://web.archive.org/web/20171230194917/http://www.searchengine
history.com/) from the original on 2017-12-30. Retrieved 2019-01-19.

6. "GoTo.com – The Original PPC Search Engine Launches New, Organic Web Search" (https://
www.webranking.com/blog/goto-com-old-search-engine-launches-anew) . Archived (http
s://web.archive.org/web/20190120043032/https://www.webranking.com/blog/goto-com-ol
d-search-engine-launches-anew) from the original on 2019-01-20. Retrieved 2019-01-19.

7. GoTo Makes Overture To New Name (https://web.archive.org/web/20070102004332/http://

searchenginewatch.com/showPage.html?page=2164231) Danny Sullivan, The Search
Engine Report, October 2, 2001

8. "Military Mother Whose Son Died In Afghanistan In 2014 Opens Up About Loss, Tragedy
Facing Americans Today In Afghanistan" (https://losangeles.cbslocal.com/2021/08/26/mili
tary-mother-whose-son-died-in-afghanistan-in-2014-opens-up-about-loss-tragedy-facing-am
ericans-today-in-afghanistan/) . August 26, 2021.

9. Yahoo reports profit on higher revenue (https://archive.today/20120712052424/http://new

s.com.com/Yahoo!+reports+profit+on+higher+revenue/2100-1023_3-961453.html) , Jim
Hu, CNET News.com, October 9, 2002 - estimating that Overture contributed $25 million to
Yahoo's revenue in Q3 2002

10. Yahoo to Acquire Overture (http://docs.yahoo.com/docs/pr/release1102.html) Archived

(https://web.archive.org/web/20070708055621/http://docs.yahoo.com/docs/pr/release11
02.html) 2007-07-08 at the Wayback Machine Yahoo press release, July 14, 2003

11. "Yahoo! Inc. - Company Timeline" (https://web.archive.org/web/20080713214826/http://yho

o.client.shareholder.com/press/timeline.cfm) . Wayback Machine. 2008-07-13. Archived
from the original on 2008-07-13. Retrieved 2016-07-19.

12. Elesseily, Mona (2007-02-05). "New Panama Ranking System For Yahoo Ads Launches
Today" (http://searchengineland.com/new-panama-ranking-system-for-yahoo-ads-launches-
today-10434) . Search Engine Land. Retrieved 2015-01-18.

13. Helft, Miguel (2007-02-05). "A Long-Delayed Ad System Has Yahoo Crossing Its Fingers" (htt
ps://www.nytimes.com/2007/02/05/technology/05yahoo.html?ei=5090&en=7c66de3983c4
4830&ex=1328331600&partner=rssuserland&emc=rss&pagewanted=all) . The New York
Times. Retrieved 2010-05-21.

14. Harry McCracken, "Project Moneyball: An Oral History Of How Yahoo Built A Native Ad
Platform In 43 Days" (https://www.fastcompany.com/3044650/project-moneyball-an-oral-hi
story-of-how-yahoo-built-a-native-ad-platform-in-4) , Fast Company, April 15, 2015
15. US 6269361 (https://worldwide.espacenet.com/textdoc?DB=EPODOC&IDX=US6269361) ,
Davis, Darren J.; Derer, Matthew & Garcia, Johann et al., "System and method for influencing
a position on a search result list generated by a computer network search engine",
published 2001-07-31, assigned to GoTo.com

16. Overture sues Google over search patent (https://archive.today/20120716230949/http://ne

ws.com.com/2100-1023-876861.html) , Stefanie Olsen and Gwendolyn Mariano, CNet
news.com, April 5, 2002

17. Google, Yahoo bury the legal hatchet (http://news.cnet.com/Google,-Yahoo-bury-the-legal-h

atchet/2100-1024_3-5302421.html?tag=mncol) , Stefanie Olsen, CNET News.com, August
9, 2004

18. David O. Klein & Joshua R. Wueller, "Trademark Enforcement and Internet Search
Advertising: A Regulatory Risk for Brand Owners" (https://ssrn.com/abstract=2897528) , IP
Litigator, Nov./Dec. 2016.

19. Overture and Gator (http://www.pcpitstop.com/gator/Overture.asp) Archived (https://web.

archive.org/web/20061016103508/http://www.pcpitstop.com/gator/Overture.asp) 2006-
10-16 at the Wayback Machine summary of the agreement and objections by pcpitstop.com

20. Yahoo and Claria (http://www.pcpitstop.com/gator/Yahoo.asp) Archived (https://web.arch

ive.org/web/20070202041710/http://pcpitstop.com/gator/Yahoo.asp) 2007-02-02 at the
Wayback Machine analysis by pcpitstop.com

21. Yahoo clamps down on Claria adware (https://archive.today/20120713144955/http://news.

com.com/Yahoo+clamps+down+on+Claria+adware/2100-1024_3-5300287.html) ,
Stefanie Olsen, CNET News.com, August 6, 2004

External links

Official website (https://advertising.yahoo.com/)