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[Blaka]

Sponsored search listings played a vital role in Yahoo's profit model. Advertisers compensated to have their advertisements showcased prominently alongside search outcomes on Yahoo search. The pay-per-click model indicated that advertisers compensated Yahoo every instance a consumer clicked on their sponsored listing. This shape of exploration advertising was a noteworthy cause of profit for Yahoo. However, as Yahoo search faced dwindling market share, its capability to produce advertising profit from sponsored exploration listings decreased, impacting the company's overall financial achievement.

 

[Ming98]

Sponsored search listings played a key role in Yahoo's profit model in the early 2000s. Sponsored listings were text ads that appeared alongside organic search results, and advertisers paid Yahoo when users clicked on their ads. This revenue model was a major source of income for Yahoo, and it helped to offset the costs of providing free search services to users. Over time, the volume of sponsored listings on Yahoo increased, and they became a more important part of the company's revenue stream. In fact, by 2005, sponsored listings were responsible for over half of Yahoo's total revenue.

 

[Dean1]

For ad placement on particular keywords, advertisers engaged in real-time auction competitions. Because advertisers were frequently willing to pay higher prices for popular and competitive keywords, Yahoo was able to maximize its revenue from those keywords thanks to the competitive bidding system.