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If you’re paying for ads on Yahoo! Sponsored Search, you need to be aware of changes that are going to take place as of February!
On February 5th, 2007, Yahoo! Sponsored is adopting a system similar to Google Adwords and begin using ad quality and relevancy to determine ad position and bid price.
But how will they be determining ‘Ad Quality’?
According to Yahoo, Ad quality is determined by:
- The ad’s historical performance – its click-through rate relative to its position in search results.
- The ad’s expected performance – which is determined by various relevance factors considered by Yahoo!’s ranking algorithms, relative to other ads displayed at the same time.
More from Yahoo!:
This change, which will impact all advertisers, is designed to allow you to focus less on competitive bidding and more on the quality of your ads. By improving the quality of your ads and making them more relevant to users, you may be rewarded with a better ranking and reduced cost for your ads.
They even provided this catchy little image to help explain it:
Some other key changes and considerations to be aware of:
- Review your current max bids. Keep in mind you may be charged up to this amount. Learn More.
- Standard match type ads will no longer receive priority placement over Advanced match type ads. Learn More.
- Fewer Sponsored Search results may now appear at the very top of the page for certain search terms. Learn More.
- Starting on February 5 there will be a transition period during which forecasting tools will accumulate more data about the new ranking model to provide better traffic estimates. Learn More.
This change has been anticipated for some time now, and should mean only good things for the relevancy of search results at Yahoo!. But it may mean a serious amount of work for current users who have to upgrade their account and check & modify all their existing ads.
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