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Yahoo Follows Google in New Sponsored Ad Rank System

Posted by Harrace

Yahoo has launched their new sponsored ad rank system for US today.

I received an email from Yahoo Search Marketing (U.S.) with the subject

“An Important Change to the Way Ads Are Ranked”, being one of their Pay-per-click account holders.

Here is an excerpt of the email:

“Bid Amount and Ad Quality will Determine an Ad’s Rank in Search Results Beginning February 5, 2007 in the U.S.” With new features like ad testing, geo-targeting and fast ad activation, the new Sponsored Search system gives you more ways to connect with customers searching for what you sell.On February 5, 2007, we are introducing a new ranking model in the U.S. that considers an ad’s quality and bid amount. The new model is designed to help you spend less time in bidding wars and more time creating the most relevant, effective ads, which can help drive better results for your business.Here’s a quick summary of this important change: 


     

  • Both bid amount and ad quality will determine an ad’s rank in search results beginning February 5, 2007.
  • This will replace the current method, in which ads in search results are ranked by bid amount only (bid-to-position).
  • This is designed to allow you to focus less on competitive bidding practices and more on the quality of your ads.
  • By improving the quality of your ads and making them more relevant to users, you may be rewarded with a better ranking and/or a lower cost for your ads.

This is what Google AdWords has been doing, whose ad ranking depends on both bid amount and the ad performance (as in the click-through rate). Yahoo is going further to consider the ad quality as well, but I am not sure how they do they are going to consider ad quality, other than the click-through rate.

In the past, it is quite a hassle to do pay-per-click campaigns for my clients who want to target different countries, as I need to open a new account in different country. So I have opened different Overture (or Yahoo Search Marketing) accounts in Korea, Taiwan, Japan, and Hong Kong in order to run my clients’ campaigns in different countries.

Google is easier to manage as I am able to target different countries in just one account. As a result, Google has taken over Yahoo to become the leader in pay-per-click advertising.

That’s why Yahoo is now making big changes to its search marketing system to make it easier to use and try to regain the market share. But I think they will have a hard time. Take me as an example, I got used to doing it in Google, and there will be a learning curve to try using Yahoo’s new system, and it would take a while before I will get used to this.

If you have used Yahoo’s new ad system, you are welcome to leave your comments here.

Update: I just received another email from Yahoo with the following subject:“New Ranking Model Launches Today, February 5, 2007″

This email reminds me of their new ranking model launch today and the matters stated above.

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