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The New Yahoo Search Marketing and You!

Justin Tadych
by Justin Tadych on Feb 13, 2007 10:09:00 AM

You may have heard that Yahoo has launched its new pricing and search ranking algorithm system. But what does this mean to you?

Say goodbye to the days when you could choose a keyword and bid precisely to a certain ad position. Now Yahoo Search Marketing has incorporated a new ranking model that requires proper PPC Management and Optimization.

Will This Affect Me?

If you use Yahoo Search Marketing for Pay Per Click, it sure will. However the effect can be positive if you pair it with the proper techniques. The playing field has been somewhat leveled because you can now pay less for your ad position if you design good ads and target the right key phrases! Now, just because someone has a bigger budget than you does not mean their add will rank over you.

Determining Your Ad's Rank and Position

  1. Bid amount and Ad Quality will now affect your position. This replaces old system where ads were ranked by bid alone.

  2. This allows you to focus on ad quality opposed to getting into a bidding war with your biggest competitor.

  3. Improve your ad and you will be rewarded with a higher Click Through Rate, in turn potentially lowering your cost per click.

How is Ad Quality Determined?

  1. Historical Performance – your click through rate taking into account your ad's position and relative to the competition.

  2. Expected Performance – determined by several relevance factors measured by Yahoo Search Marketing's ranking algorithms.

How Do I Make this Work for Me?

Now that the Yahoo Search Marketing Pay Per Click engine is modeled similarly to Google AdWords, advertisers have a better way to optimize their PPC campaigns. To see if you are getting the most out of your campaigns ask yourself the following questions.

  1. Are you targeting the right keywords?
  2. Are you targeting the right regions?
  3. Do you have compelling ad copy?
  4. Have you split tested ads to find the right message points?
  5. Do you have a well designed landing page?
  6. Are you measuring your success with conversion tracking?

If you did not answer "Yes" to all of these questions, seeking qualified professionals for PPC Management and Optimization is a good idea. These professionals can help you design and optimize a successful Pay Per Click campaign that will improve your ROI.

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Justin Tadych
Written by Justin Tadych
Justin is our Assistant VP, Online Marketing, focusing on online advertising strategies and services. Priding himself on running the most effective and efficient ad programs possible, Justin focuses on maximizing Return On Investment while generating the best possible results for our clients' online advertising programs.

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