Yahoo to Enter 21st Century
One of my least favorite things about Yahoo Sponsored Search (YSS, formerly Overture), is that ad placement is determined only by bid. Google’s AdWords program ranks ads according to a combination of bid, click-through-rate (CTR), and other factors, the net result being that intelligent advertisers are rewarded with better “bidding power” over those lesser quality advertisements. Without CTR, YSS ads are subject bidding wars that can drive up costs and require significantly more frequent bid adjustments. Now comes word that Yahoo is testing a system that includes CTR. While currently only available in Scandinavia, the plans appear to be to rollout the new program within the next few months.
I have counseled many clients to limit spending on YSS or avoid it entirely, mostly because of the higher costs that simple bid-for-position imposed. If CTR is properly implemented, it is very likely that I will reverse my position, recommending that clients place advertisements that reach 30-40% of Internet search engine users.
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