Catherine "Cat" Seda

Monday, February 05, 2007

Yahoo! Ad Ranking Model Change Today

It’s finally here…

Yahoo!’s new ad ranking model (cost-per-click bid + quality score = ad rank) will launch around 3 p.m. PST today.

Can’t wait to see how this impacts advertisers’ spend. If you want to rant or rave about how this change impacts your budget, your comments are welcome!

Personally, I’ll miss the bid-to-position PPC (pay-per-click) model. I often recommended that newbies start with Yahoo! Sponsored Search because the old model was easier for them to understand. However, now that many advertisers start with Google AdWords, adding Yahoo! to their mix is easy.

I can’t help taking a walk down memory lane…

In 1996, I started buying keyword banner ads for clients. Yahoo! was one of my first campaign buys (actually, keyword banners worked really well. It was those dang run-of-site ads that killed the banner’s reputation). In 1999, I tested AltaVista's bid-to-position PPC program. “What a budgeting nightmare!” I thought. But I was soon managing client PPC campaigns on GoTo which became Overture and is now Yahoo! Sponsored Search. PPC’s amazing ROI (return-on-investment) was instantly addicting.

PPC today…

The good—more sophisticated tools. The bad—more sophisticated advertisers. The ugly—a shrinking ROI for some keywords/industries, no matter how much optimization you do.

How did you get your start in PPC? Got a great story to share?


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