From my Forbes.com blog The New Persuaders:
Search ad giant Google grossed about $10 billion last year from AdSense, the program that syndicates text and display ads to thousands of websites from the New York Times to the tiniest niche publishers. So it’s no wonder that more than two years after shutting down its own AdSense competitor, a struggling Yahoo is taking another crack at it.
Today, it’s announcing a partnership with Media.net, an under-the-radar provider of contextual advertising like AdSense’s that runs ads on websites matched to the site audience’s interests. The program, called Yahoo! Bing Network Contextual Ads, will allow websites to run text ads (like those pictured on the top right) from the Yahoo! Bing Network, the recently renamed search alliance between Yahoo and Microsoft.
The awkwardly named program has the potential to be a badly needed boost in revenues for Yahoo, which have been stagnant for a long time. Despite Yahoo’s weakened state, it still has a valuable brand, worldwide audience of a half a billion, and search ad deal with Microsoft. Those factors will lend the venture instant credibility in an online ad industry that’s an increasingly crowded, competitive morass of ad networks (perhaps including a likely new one from Facebook), ad exchanges, an alphabet soup of ad tech providers, and, of course, Google’s AdSense.
Talks have been underway between Yahoo and Media.net since 2010, even before the Yahoo Publishing Network was shut down, according to Divyank Turakhia, founder and CEO of Media.net. And Turakhia’s other related ad companies had worked with Yahoo for a couple of years before that. So don’t get the idea that this is a big new idea from Marissa Mayer, Yahoo’s relatively new CEO. …