Yahoo! Giving Web Ad Market a Shout

At Yahoo! (YHOO Quote), it's all about the advertising.

Despite Yahoo!'s ongoing efforts to diversify its business with fees-and-listings revenue, online advertising will be the focus of attention when the Internet bellwether reports third-quarter results after the market's close Wednesday.

In part, that's because Yahoo! completed its acquisition of pay-per-click search engine firm Overture Services(OVER Quote) after Tuesday's shareholder vote on the merger. Such search engine advertising -- in which advertisers bid for top placement among search engine results but pay only when Internet users click on their listings -- has been the hottest growth area for online advertising in recent years. And the action in that arena has only gotten hotter in recent days.

But the attention stems also from Wall Street's perception that more conventional online advertising -- the business that boomed in the late-'90s dot-com frenzy but collapsed in the bust -- is enjoying a sustainable revival. Yahoo! shares fell $1.22 to $38.65 Tuesday.

Enthusiasm

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