Yahoo Extends Search Marketing Pact with United Online

Yahoo has extended its search and search marketing deal with United Online, a provider of consumer Web and media services. Under the new multi-year agreement, Yahoo will continue to deliver its sponsored search and web search results to United Online's suite of serviced operating under the brand names NetZero, Juno and Bluelight.

"After exploring several options, we decided that Yahoo's new search marketing system was the best platform for us," said Mark Goldston, chairman and chief executive officer of United Online, in a statement.

The Yahoo search box will appear prominently on each member's NetZero, Juno and Bluelight start page.

The deal is a much needed show of confidence in Panama, Yahoo's new search advertising platform, just a day after the company failed to meet analysts' expectations.

Indeed, Yahoo's first-quarter profit and sales trailed estimates after Panama failed to generate the revenue gain some investors expected. Net income fell 11% to $142 million, or 10 cents a share, from $159.9 million, or 11 cents, a year earlier. Sales rose 9% to $1.18 billion, excluding revenue passed on to partner sites.

During a conference call with investors Tuesday, Yahoo CEO Terry Semel said all U.S. advertisers have been successfully migrated to Panama as of March 30.

While results have been mixed depending on advertiser, the net review is that the Feb. 5 release of Panama is resulting in higher levels of click-through rates.

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