Updates Yahoo!'s stock price

Internet giant Yahoo! ( YHOO), which beat Wall Street's second-quarter estimates Tuesday, is gearing up for a marketing onslaught in an attempt to boost its brand awareness and challenge Google ( GOOG).

The Sunnyvale, Calif.-based firm, which launched a revamped homepage earlier this week, is planning a major rebranding exercise, according to CEO Carol Bartz.

"We are hard at work on plans to reposition our most valuable asset, Yahoo!'s brand," she said. "Our Q3 plans include an initial wave of incremental marketing spend which will increase substantially into Q4 and next year."

The company will now be "re-architecting and globalizing" its products to make them more open, scalable, and mobile-friendly, said Bartz. "We will make it easier to distribute our content anywhere it needs to be around the world," she said.

Yahoo! also wants to boost the relevancy of advertisements linked to its search business, as well as display ads on its Web pages. This could mean reducing the frequency of some ads and potentially eliminating others, according to Bartz.

Revenue from Yahoo!'s owned and operated search business came in worse than analysts had expected, falling 15% year over year, compared to Jefferies & Company's estimate of a mid single-digit decline. The company's display business dipped 14% year over year, but was slightly up sequentially.

The firm is now planning to hire additional sales people and engineers to support its branding efforts, although Youssef Squali, an analyst at Jefferies & Company, thinks that this should be taken in context.

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