Yahoo! has announced its Project Panama is set to be fully operational from next March, three months behind schedule.

The company hopes the new marketing software will emulate rival search engine company Google and generate more revenue from each internet search, reports Bloomberg.

According to Merrill Lynch & Co, the project could generate an additional $115 million (£58 million) in sales during the second half of 2007.

Panama is already being used by some marketers in the United States, as Yahoo! chief executive Terry Semel told the publication: "We're starting to get a lot of positive feedback".

Under the software, marketers will be able target adverts to certain geographic areas, make changes to advertisement text quickly and manage campaigns using multiple search terms.

The move comes as Yahoo! announced it was to undergo a "major company restructure" as it aims to give a better focus towards audiences, advertisers and publishers.