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Yahoo! Fractures the Faith

04/18/07 - 11:23 AM EDT

Vishesh Kumar

Google intends to link the two mediums and give advertisers one platform to manage both budgets. This new approach could tilt advertiser online budgets away from Yahoo! and toward Google. Microsoft(MSFT - Cramer's Take - Stockpickr), which lost the bidding war for DoubleClick, also may remain bent on entering the market and put further pressure on Yahoo!.

Decker said Yahoo! also provides advertisers with tools to manage display and search campaigns in concert.

Yahoo! also plans to draw attention to some of its accomplishments by launching its own on- and off-line media campaign. The effort will highlight Panama, Yahoo! mobile service, and Yahoo! Answers, a service that lets users pose questions to Yahoo!'s online community.

For investors, however, the new features may take a backseat to Yahoo!'s progress in the display ad business that contributes so heavily to revenue.

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