Adobe and Yahoo test running ads inside PDF documents

By Eric Auchard

SAN FRANCISCO (Reuters) - Software maker Adobe Systems Inc and Internet company Yahoo Inc said on Wednesday they will offer a service to let publishers run advertisements in Adobe's popular document-reading format.

The new service, Ads for Adobe PDF Powered by Yahoo, 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 deal is the latest move by Yahoo to expand the reach of its advertising beyond Yahoo-owned sites. Since last year, Yahoo has signed partnership deals to supply online ads to Web auctioneer eBay Inc, cable TV group Comcast Corp and a consortium of U.S. newspaper groups.

The Adobe service allows publishers to generate revenue by including text-based ads linked to the content of an Adobe PDF (portable document format) page in a separate side panel.

"People want content for free," said Matt Swain, an analyst at market research firm 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?"

The service is set to begin public testing, which will run several months, the companies said. An earlier private test included technology and professional publishers IDG InfoWorld, Wired, Pearson Plc's Pearson Education, Meredith Corp and Reed Elsevier NV.

The free service requires no special software and is open to U.S. publishers of English-language content, initially.

Publishers who join Yahoo's online advertising network get access to the Web company's extensive network of advertisers.