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Online Ad War Heats Up

Hotel Booking By Dave Porter

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Travel Agency (AXcess News)Reno, NV- Last week, Microsoft (Nasdaq: MSFT) announced the debut of its new AdCenter at a Redmond, Wash.-based forum for advertisers. Today, Yahoo! (Nasdaq: YHOO) is expected to release details of its newly rebuilt advertising system, paving the way fora new round of online advertising competition between the two search engines and Google (Nasdaq: GOOG), currently the dominant player in online contextual advertising.

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Cheap Hotel Yahoo's new advertising system is considered the biggest development Yahoo has come up with this year and is the first change to it's advertising platformsince it was launched by internet start-up GoTo in the late-1990s, according to Tim Cadogan, vice-president of search at Yahoo.

'Split Payment' On Holidays Launched For The First time Online Expedia.co.uk today becomes the first online travel agent to allow customers to split the payment on their holiday bookings in a move to give greater flexibility and choice for travellers and enabling people to travel at an affordable price. Customers booking an Expedia flight and hotel or flight, hotel and car package will be given an option to pay a deposit rather than having to find the full cost of the holiday at the time of booking, making it easier and more affordable than ever for people to let themselves go on holiday in 2006.

Flight Booking GoTo, which was later renamed Overture, was the pioneer in advertising linked to content search results. Yahoo acquired Overture two years ago and shortly afterward Google launched a similar advertising platform that resulted in a legal battle which was settled before Google's IPO.

For the second year in a row, Venere.com has been voted best hotel booking web site by the leading Norwegian newspaper Aftenposten. Journalists at Aftenposten conducted a test among 23 hotel booking engines. The test was based on a combination of hotel price against a set of web site criteria usability, maps, pictures, payment method, quality of hotel information and hotel policies. Venere.com came out as the winner for online bookings, hrs.de was second and hotwire.com third.

Travel Agent You would think that with Yahoo's lead in contextual link advertising tied to search results that it would maintain its market dominance, but Google soon overtook Yahoo in market share and has remained the market leader ever since.

OAG, the global travel and transport information company, announced today the addition of a new online hotel £ook and book service on its travel web site, www.oag.com. World Choice Travel, a division of the Travelocity Partner Network, powers the reservation system.

Hotel Chicago Yahoo generates 30-50 percent less advertising income for each search conducted on its site than Google does, according to market estimates, which makes sense, since Google spiders more pages freely than Yahoo, which only grabs one link and then holds Web sites hostage by commanding a fee per link that is charged annually. So the logic herewas fewer pages and therefore fewer ads, which also meant lower levels of use by Internet users.

Online Booking Cadogan says that Yahoo is changing the way it prioritizes links that are displayed. In the past, links were displayed based on how much an advertiser paid, with the highest bidders standing on top. That created a dominating format where some ads had top positions but few click-throughs, which lowered the search engine's revenue.

Travel Health Insurance The new Yahoo ad format will take into consideration several factors, which includes click-through-rates (CTR), Cadogan said. The format closely mirrors Google's.

Hotel Reservation When Yahoo changes the technology that advertisers use to bid for, and manage, portfolios of keywords on the system its new ad format will be applied, which Cadogan said would happen shortly.

London Hotel Booking Yahoo believes the new ad technology will encourage more advertisers to use the ad management system and thus, increase Yahoo's ad revenuewhile providing advertisers more bank for the buck.

Discount Travel Yahoo's new advertising platform takes into consideration factors such as demographics or user behavior besides keyword search terms. But MSN's new contextual ad platform promises similar "intelligence" factors and unlike Yahoo, MSN is partnered with one of the top online ad agencies in its deal with DoubleClick who will open up the program to third-parties.

Orlando Hotel But Cadogan boasts that Yahoo's ad program will be diverse and enable Yahoo to eventually offer it across other types of content, such as video, which is virgin territory for Web advertisers, though thanks to network television its opening up new markets. CBS Corp. (NYSE: CBS) just announced its cable-TV move into Web entertainment last week and brought with it two large advertisers with its launch.

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