Yahoo’s road to redemption…

In light of past reports about Yahoo’s decline with a reduction of online advertising dollars and a delay in the roll-out of their new ad system, reports surfaced just this week about “Project Panama” and its apparent rebound. Now articles online are indicating that Yahoo’s new ad serving software – designed to improve the way your advertisements are matched with search queries – has just got off the ground. However, it will be a long road to recovery for Yahoo as the search engine giant’s third-quarter reports that the fact Project Panama got off the ground is the only decent news so far. With estimates below what Wall Street expects, there appears to be skepticism that Yahoo will exceed expectations in the fourth quarter.

In a report on CIO Today, part of Yahoo’s continued decline happens to partially be due to increased competition its facing from social networking sites like MySpace and Facebook, and the emerging dominance by Google with its recent purchase of YouTube. Nevertheless, Yahoo’s demise isn’t here yet and the CEO has some plans on how to revive the popular online portal.

With the deployment of ‘Project Panama” expected around 2007, CIO Today reports that Yahoo will partner with AdInterax and Right Media Exchange to help increase service on its online advertising capabilities. In addition, graphic advertisements for banner ads should be available soon as an option for advertisers.

Will these pay off? Wall Street hopes so in 2007…