Yahoo! Sponsored: Relevancy Smack-down
The time of coasting thru Yahoo! Sponsored is over. Dealing the one-two punch to the Overture schematic they have announced a date for the implementation of their new quality algorithm we all knew was coming, February 5th, 2007. Yahoo! Sponsored is adopting a similar strategy as Google AdWords and will start using the quality and relevancy of the adÃƒÂ¢Ã¢â€šÂ¬Ã¢â€žÂ¢s to determine ad position and therefore bid price. Here is an excerpt from the announcement:
- 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 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.
So what is ÃƒÂ¢Ã¢â€šÂ¬Ã…”Ad QualityÃƒÂ¢Ã¢â€šÂ¬Ã‚Â you may askÃƒÂ¢Ã¢â€šÂ¬Ã‚Â¦ Well here is what Yahoo! has to say about it:
- 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.
Oh, and this too:
- We recommend that you review your current max bids. Keep in mind you may be charged up to this amount.
- Standard match type ads will no longer receive priority placement over Advanced match type ads.
- Fewer Sponsored Search results may now appear at the very top of the page for certain search terms.
- Starting on February 5 there will be a transition period during which forecasting tools will accumulate more data about the new ranking model to provide better traffic estimates.
For those of us that like pictures here’s the idea:
Juicy stuff. The challenge is on!
This will put a serious damper on the ÃƒÂ¢Ã¢â€šÂ¬Ã…”dump-and-runÃƒÂ¢Ã¢â€šÂ¬Ã‚Â accounts which now plague the relevancy of search results over at Yahoo!. This of course is great news for those who have a fondness of creating optimized accounts and ad copy but will mean a crap-ton load of work for those reconciling client accounts. This change, on top of the new transition to the Panama interface (what is with their transition methods here anyway??) represents a huge workload for those of us in the CPC game. What they should have done is just close everyoneÃƒÂ¢Ã¢â€šÂ¬Ã¢â€žÂ¢s account and say ÃƒÂ¢Ã¢â€šÂ¬Ã…”OK, now start over.ÃƒÂ¢Ã¢â€šÂ¬Ã‚Â I am beginning to think it may have been easier this way.
I will give kudos to Yahoo!ÃƒÂ¢Ã¢â€šÂ¬Ã¢â€žÂ¢s bulk upload feature however. While a bit buggy at times it can be a life saver during these transition times and even has the feature of allowing you to upload your AdWords account directly into the Panama interface. And also a great thanks for the faster ad review times, now minutes as opposed to days.
If you canÃƒÂ¢Ã¢â€šÂ¬Ã¢â€žÂ¢t beat ÃƒÂ¢Ã¢â€šÂ¬Ã‹Å“em join ÃƒÂ¢Ã¢â€šÂ¬Ã‹Å“em.
Good luck everyone.