Yahoo Publisher Network, similar to Google AdSense, has launched a program whereby publishers may push out Yahoo Search Marketing ads in their RSS feeds. RSS is an increasingly popular way for Internet users to receive instant content updates from various websites or sources in one central location.
The new program allows publishers to place ad listings within RSS feeds that are relevant to the content of the feed in general, or to a particular post. One such example is on the blog feed belonging to the director of Yahoo's Developer Network, Jeffrey McManus (formerly of eBay), seen in this screenshot. (You won't see the ads on the blog itself, only on the RSS feed.)
The program allows bloggers to copy and paste code into their feed-publishing template so when the feed is viewed, ad listings are displayed (https://publisher.yahoo.com/portal/RSSSetupGuide.php). However, the Yahoo Publisher Network is in beta and publishers must apply to the program (http://publisher.yahoo.com).
Contextual advertising programs like Yahoo Search Marketing and Google AdWords are used by advertisers, including online sellers, to try and drive traffic to their websites and listings. With blogs and feeds becoming increasingly popular, this allows advertisers to reach a potentially wider audience.
https://publisher.yahoo.com/portal/AboutRSS.php