A Yahoo Inc. spokeswoman confirmed this week that the company's search-marketing division, formerly known as Overture Services, has started testing graphical banner ads displayed based on their relevancy to a Web page's content.
"We're always looking at ways of enhancing our services," Yahoo spokeswoman Gaude Paez said. "There are a number of things we're looking at doing [in search advertising], including tests we've begun for putting sponsored listings in a banner, graphical format."
The test is running on Yahoo's network of sites, rather than on partner sites, she said. The ads are dynamic, initially appearing as a banner ad and then transforming into a sponsored link.
She declined to provide further details about Yahoo's plans for the graphical, pay-per-click ads.
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