New Yahoo Search Marketing Ranking

Last week, Yahoo announced that the new method of ranking their paid advertising will begin as of February 5. According to their blog, the ranking will be determined by two factors…

1. Bid Price
2. “Ad Quality”

Sound familiar? At first glance, it looks like they are copying Google. Google multiplies your bid price by your CTR (Click Thru Rate) to determine your bidding.

However, Yahoo’s “Ad Quality” is not just the CTR. They mention that an ad’s quality will be determined by:

1. It’s HISTORICAL performance.
2. It’s EXPECTED performance.

They recommend that you look at the “Quality Index” (which can be found per keyword in your account) to get an understanding of your ad’s overall quality.

I’ve got some definite thoughts on all this. (See my next post.)

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