Posted on: April 19, 2008
In another move to copy Google, Yahoo has decided to no longer keep the minimum bids for their PPC program at $0.10 per click. If you're an advertiser, you might have already received and email that your ads have been disabled and minimum bids have been raised.
This is another bozo move by Yahoo.
Is this a desperate effort to increase the companies revenues? Will it backfire?
The minimum bids will be decided based on “quality” and “value”.
Quality—High quality generally means that your ads are being clicked more often, relative to your competitors. We try to reward quality with higher rankings and lower costs, and now, potentially, with lower minimum bids.
Value—We look at a number of things to determine what a keyword is worth: for example, how many advertisers are bidding on your keyword, and what they’re willing to pay for it.
Reading through some of the comments on the Yahoo blog post, I can see that this move is not popular with advertisers. The truth is that many advertisers will abandon Yahoo. Already, the volume is lower compared to Google AdWords. Now whatever profit margins you have with Yahoo PPC will be squeezed further and you will eventually be priced out of the market.
Technorati Tags: Yahoo search marketing, YSM, minimum bids, Yahoo slap, PPC
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