Scottrade Tests New Yahoo Search Ad Unit

Yahoo is testing new search ad targeting and placements on its search site. An entirely new offering allows advertisers to buy text ads directly within Yahoo’s drop down menu of suggested keywords.

The firm is also hoping to increase ad relevance by employing previous user activity on Yahoo sites to inform ads targeted in search results. The company expects to provide new leads for advertisers through this more sophisticated targeting. This marks the first time the firm has employed data from past searches or other Yahoo interaction data to target ads on search results pages.

Google began targeting AdWords ads based on current and previous searches in 2007.

Yahoo also aims to generate revenue through the suggested terms tool it features in its site search. Online stock trading service Scottrade is currently testing the new text ad unit, which pops up in the drop down menu of suggested keyword terms. Users entering a word beginning with the letters “s-c-o-t” will spot a Scottrade ad below suggested terms including “Scott Peterson” and “Scotland.” The firm is also using behavioral data gleaned on Yahoo to target the Search Assist ads.

The company also touted a new desktop tool for managing large search ad campaigns yesterday during an event held to promote new products to the media.