Yahoo introduced several tools on Tuesday that it says will help marketers target their ads more efficiently at a time when many of them are cutting advertising spending drastically.
One of the new products lets marketers target people with tailored display ads based on the terms they used in Yahoo's search engine.
Another tool customizes display ads based on the websites people have visited and their activity on those sites.
Marketers are looking for increased accountability for every dollar they spend, said Michael Walrath, senior vice president of Yahoo's Advertising Marketplaces Group, in a statement.
Yahoo will also introduce a search advertising tool next month that lets marketers control what time and day of the week they want their ads to run, and what age group or gender they want to target.
Yahoo, which has been struggling to retain market share against bigger rival Google Inc, launched the new tools at the Interactive Advertising Bureau's annual conference in Florida.
Yahoo's new Chief Executive Carol Bartz is expected to announce major management reorganization as early as this week, according to press reports.
Separately, Microsoft Corp Chief Executive Steve Ballmer said on Tuesday at the company's analyst day he wants to team up with the Yahoo to take on Google.
Ballmer added that pooling resources with Yahoo does not mean he wants to acquire the company. Microsoft walked away from its $47.5 billion buyout offer for Yahoo last May.
Shares of Yahoo were up 3.4 percent at $12.38 in early Nasdaq trading on Tuesday.
(Reporting by Anupreeta Das, additional reporting by Ajay Kamalakaran in Bangalore; Editing by Derek Caney)