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Last Updated: Monday, 8 May 2006, 04:38 GMT 05:38 UK
Yahoo unveils new advert system
Yahoo chief executive Terry Semel
Yahoo boss Terry Semel remains 'excited' about Yahoo's prospects
Internet giant Yahoo is on Monday due to launch an upgrade to its web search advertising system, as it aims to catch up with market leader Google.

Yahoo's new software system aims to let advertisers target potential customers more accurately based upon the words users type into the search box.

"Understanding how ads actually work together is why we are introducing with the new system," said Yahoo.

Analysts said Yahoo was now catching up with Google's technology.

"It's something the industry has been waiting on a long time," said Paul Kelley, an advertisement buying specialist with the Carat Fusion agency in San Francisco.

Second largest

Yahoo's new system further aims to enable advertisers to instantly calculate the cost of acquiring new customers.

Starting on Monday, it will then get a full launch in the autumn.

The company's chairman and chief executive Terry Semel said last month that he remained "very excited about Yahoo's prospects".

According to recent figures, Yahoo has a 27% share of the search engine market, behind Google's leading 42%.

Microsoft's MSN has a 13% stake, with Ask on 6%.

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