• by Laurie Sullivan  @lauriesullivan, August 5, 2011

Microsoft is working to implement adCenter features aimed at increasing revenue per search (RPS) in paid-search campaigns that David Pann, the company's GM for adCenter and Search Networks, calls "a step in the right direction."

The improvements should remove the roadblocks the Microsoft and Yahoo search alliance has hit in the past year. In its last earnings call, Yahoo CEO Carol Bartz publicly pointed to poor RPS results as a roadblock to rolling out the combined Microsoft and Yahoo paid-search alliance network internationally.

Engineers for adCenter are continually trying to do a better job of matching the supply and demand. "I have a motto -- adCenter needs to enable advertisers to do in 15 minutes what they do on Google in 45 minutes," Pann said. "Our goal is to simplify the work flow process."

Through adCenter, Pann wants to give advertisers better targeting capabilities, make the sign-up process for small advertisers much easier, and provide better reporting capabilities.

Between now and the end of October, adCenter will roll out a new user interface, reporting features, targeting, and enhancements to core algorithms for improved matching, according to Pann. On Friday, adCenter rolled out upgrades to broad and phrase-match type features, but the advertising platform also supports exact match and negative match keywords.

Advertisers opting into broad- and phrase-match keyword options should see click quality improve, along with conversion rates. Consumers also will find more relevant ads with each search query.

Engineers in the adCenter group improved the two match types by integrating Bing's algorithmic results technology into the ad platform. Pann said the system will automatically match campaigns to search queries for advertisers already using broad- and phrase-match features.

About six months ago, Microsoft moved Bing engineers to the adCenter team to work on the core matching and relevance technology. The two teams are in the same business unit, but operate under their own respective engineering groups, although the two groups are working to share the technology.

adCenter will roll out to India within the next two months, with other markets to follow in 2012.