Adobe, Yahoo test running ads inside PDF documents

By Eric Auchard

SAN FRANCISCO, Nov 28 (Reuters) - Software maker Adobe Systems Inc (ADBE.O: Quote, Profile, Research, Stock Buzz) and Internet company Yahoo Inc (YHOO.O: Quote, Profile, Research, Stock Buzz) said on Wednesday will offer a service to let publishers run advertisements inside Adobe's popular document reading software format.

Ads for Adobe PDF Powered by Yahoo, as the new service is known, presents publishers with an alternative to conventional subscriptions, which, if widely adopted, could open up a new model based on free, ad-supported publishing, analysts said.

The service allows publishers to generate revenue by including text-based ads linked to the specific content of an Adobe PDF page. The advertisements can only run in a side panel separated from the publication's actual content.

"People want content for free," said Matt Swain, an analyst at market research firm at InfoTrends, who has been briefed by the companies on their plans. "The question is how do I reach consumers without charging them a subscription fee?" he said.

The service is set to begin public testing, the two companies said. An earlier private test included technology and professional publishers IDG InfoWorld, Wired, Pearson Plc's (PSON.L: Quote, Profile, Research, Stock Buzz) Pearson Education unit, Meredith Corp (MDP.N: Quote, Profile, Research, Stock Buzz) and Reed Elsevier NV (ELSN.AS: Quote, Profile, Research, Stock Buzz) (REL.L: Quote, Profile, Research, Stock Buzz).

The free service requires no special software and is open to U.S. publishers of English language content, initially. The public test is expected to run several months, officials said.

Publishers who join Yahoo's online advertising network get access to the Internet company's extensive network of advertisers based on the subject matter of their content.

"This is powerful up and down the spectrum of publishers," said Todd Teresi, senior vice president of the Yahoo! Publisher Network, of how customers may include everyone from media conglomerates to a school's parent-teacher group newsletter.