Uncovering “Project Panama”…

Codenamed “Project Panama”, this apparent top-secret project being undertaken by Yahoo! appears to be the search engine giant’s attempt to redeem itself in the wake of new competitors.

With the success of Google AdWords and the unveiling of Microsoft’s response to the apparent “duopoly”, Yahoo has been losing ground (and revenue) and has been forced to rethink its strategies. In the most recent reports, they have forced their employees in their Mountain View headquarters to take a vacation the week after Christmas this year. This cost-saving steps is reflective of the company’s fear that troubled times may be coming.

Nevertheless, Yahoo has faith that its new products that they are developing will bring back prosperity to one of the most popular online destinations. Forbes magazine reported in April that Yahoo is testing out a new ad-serving mechanism that will enhance the measuring of an ad’s success through relevance and the amount paid for the advertisement.

When is this new feature scheduled to roll out? Initial tests have been conducted in Scandanavia and Forbes.com reports that a rollout was scheduled in the U.K. for this past July. Unfortunately, recent searches on “Project Panama” have indicated that Yahoo has postponed launching until 2007.

Will Yahoo be able to bounce back after being hit with announcements of the Google-YouTube purchase, MSN’s new online advertising module, and a decrease in revenue in the wake of financial institutions and automotive companies reducing their online advertising funds? Let’s wait and hope 2007 will be a better year…

By Ken Yeung

Ken Yeung is a journalist fascinated with the stories of the tech industry and internet culture. He's currently the Technology Editor at Flipboard, where he observes what's happening in the space while also identifying new topics of interest. In addition, he co-hosts the weekly internet show "The Created Economy," which focuses on what's happening to creators and influencers. Previously, he was a reporter for VentureBeat and The Next Web, covering tech startups, the industry's innovations and funding. Ken also has a newsletter you should also subscribe to called "Filed."