A Important Update on Yahoo Search Marketing

If you are making money online using PPC advertising programs, this news should concern you. Yahoo has announced that they will rank ads in their search result based on ad's quality and bid amount beginning Feb 5 2007 in US. This means that advertisers with highest bid amount are not guaranteed to rank top in the sponsor listing.

Here's an extract of the announcement that explains more about how Yahoo will rank ads in the future:

Example of How Ads May be Ranked
The graphic below helps illustrate a scenario that may result from this change:
New Ranking Model
Note: The graphic above is provided for illustrative purposes only, and will not actually appear in your account.

What is "Ad Quality"?
Ad quality is determined by:

The ad's historical performance - its click-through rate relative to competitors and normalized for position.
The ad's expected performance - determined by various relevance factors considered by Yahoo!'s ranking algorithms, relative to other ads displayed at the same time.

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