Search Engine Marketing
Yahoo Sponsored Search abandons fixed-priced minimum bids, adopts Google model
Yahoo recently announced that minimum bids for sponsored search will change from their flat $0.10 fixed price to a variable model. In a nutshell Yahoo is adopting the Google model of setting a minimum bid price based on what Yahoo values the keyword(s). So some keywords could have minimum bids less than $0.10, and others higher. As expected a lot of affiliate marketers are in an uproar, considering the variable minimum bid pricing model was the reason a lot of them left Google in the first place. If you’re in a highly competitive industry, expect your bids to go up, way up as Yahoo will now take into account factors such as the amount of people bidding on the same keywords and what those people are willing to pay for those same keywords. This of course means more money for Yahoo, and expect the smaller people to get pushed out while those with the deepest pockets move up.
If you build relevant, high quality ads and relevant landing destinations - you’ll be fine. Everyone else better get your account manager at your credit card company on speed dial …
