Two of these new products are meant for display ads while the third is for sponsored search ads.

Search Retargeting

Search retargeting allows advertisers to display ads to their target audience, based on the user’s search activities. For e.g. when a user types in the keyword ‘Sandals’, the advertiser can display ads for different types of footwear, encouraging the user to make his purchase online.

According to reports from the University of Phoenix, Search Retargeting allowed them to reach their targets at 50% lower costs than required in regular display retargeting efforts.

Enhanced Retargeting

Enhanced retargeting enables the advertiser to put up dynamically generated display ads across the entire Yahoo! network, depending on the user’s activities on the advertiser’s site. For e.g. when a user visits a page on the Yahoo! network, looking for details about flights from one destination to another, the advertiser can make a personalized offer to that customer for that specific flight.

A leading online travel company reported a 230% increase in the total bookings and a 651% increase in the click through rate with enhanced retargeting, compared to the traditional retargeting methods.

Enhanced Targeting

This is a combination of ad scheduling and demographic targeting within search. With this product, advertisers can control where and when the ad is shown, at the campaign as well as ad group levels. They can decide the time of day and days of the week when ads should appear. Advertisers can also decide the demographics (gender and age group of the user) that their ad should reach. The advertisers will be able to vary bids according to the different segments to increase the ability to reach a desired audience.

These announcements were made at the Interactive Advertising Bureau’s annual conference, as part of Yahoo!’s keynote presentation. During their presentation Yahoo! urged advertisers to stop the “artificial boundaries” being put up between display and search ads and make optimal use of search targeting products reach maximum users.

These proposals have not yet been finalised, but The Register reports that they are in line with EU Audiovisual Directives issued last year.

Current rules allow channels like ITV1, GMTV, Channel 4 and Five only 7 minutes of advertising per hour, with only one break in a show of half an hour, and two breaks during a show of one hour duration with a minimum interval of 20 minutes between two consecutive ad breaks.

The new guidelines proposed will allow channels to include 2 ad breaks during a half hour program. Also, the mandatory 20 minute interval between breaks will be abolished to allow the break to be inserted at a convenient point during the program. An ad break will be allowed every 30 minutes, instead of the current 45 minute interval while broadcasting movies.

Read the Ofcom press release

The statement released by Ofcom implies that while viewers opinions and concerns are important and will be welcomed, they are bound to take into account the revenue generated by advertising in order to pay for the choice of television services viewers are able to enjoy.

Commercial broadcasters are very much in favor of these changes as TV advertising revenues have been falling in proportion to the increase in number of users of the Web. Paradoxically, however, it is very likely that longer and more frequent ad breaks on TV may drive more viewers to the Web, eventually leaving them with even fewer viewers.

If things work out well, broadcasters and large companies as well as small and medium businesseses will benefit from the new laws. The increased advertising opportunities would allow brands additional opportunities to reach viewers, also earning the broadcasters additional revenue. Some viewers, though, might abandon TV for the Internet. SME advertisers could then reach these consumers through online ads that are typically cheaper than TV.

However, if viewers respond badly to too many ads, both the brand owners and broadcasters could incur heavy losses as viewers look upon the ads and their associated products negatively.
Ofcom will take a final decision on these regulations and implement them by 1st January 2009.