yahoo getting rid of their bid system

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Stanley

Stanley

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about the only thing I liked about yahoo sponsored search was their bid system
you were able to see the top 5 bids and see where you rank

now those fuckers are making it like adwords

just got this in an email:
The bid information displayed within your current account will soon change. As advertisers upgrade their accounts, their bids will no longer be reflected in the current system. To ease this transition and help provide you with accurate bidding information, in approximately six to eight weeks you will see two new data points on the Manage Bids page: First, you will see a bid range for prime placement. This bid range will tell you what advertisers are currently bidding for the spots at the very top of the search results page for each keyword (Example: $.75 - $.25). Second, you'll see an estimate of your average position for each listing. Each time you enter a new bid this estimate will change, so you'll be able to tell where your listing is likely to appear for a given bid. Once these two new pieces of information become available, you'll no longer see the Top 5 Max Bids column displayed in your account.
Click to expand...
 


You'd think that the network that created the whole ppc bidding model in the first place would be on top of their game and be able to have a near flawless setup. But no, that's too much to ask for. Yahoo was stupid because they should have constantly tweaked their system and applied creative upgrades. Overall their system is pretty much like the same one that existed years ago, not much has changed. Fools I tell ya.
 
Yeah, Yahoo got fat and lazy. They just sat there watching google whoop their ass.

IMO, as long as they fire every one of their useless friggin editors, I'll probably spend more money with them then. Otherwise, I won't waste my time playing their editorial games.
 
that must be the reason they ran the $100 promo for new sign-ups...
sucker all us newbs in.

or maybe coz they'r losing market share like a sive:

Google Expected to Pocket 25% of Online Ad Revenue in 2006
"Google's US ad revenue growth rate in 2006 will soar almost 65% over last year's. Yahoo! still shows a respectable 17.5% growth rate, an increase that would satisfy most companies. But not one competing against Google. Just a year ago, Google and Yahoo! both posted US ad revenues of more than $2.4 billion. For the full year 2006, though, Google at $4 billion in ad revenue will eclipse Yahoo!'s ad revenue of $2.9 billion."
 
Yahoo is switching from the straight up bid placement to a total revenue model like Google. I suspect they will see a huge jump in earnings.

I liked the bid placement because it was so exploitable, you can make an ad show up #1 or #2 for key phrases that Google would bump you down to #20 for the terrible clickthrough rate.

On the other hand, this may push down the revenues of publishers who already had high clickthrough rates due to aggressive optimization.
 
I don't like this at all.

Currently if you bid on "green widgets with blue spots" for 10 cents you beat $10 "widgets", if someone types in the long search term. But that won't be the case soon.

So my thousands of long tail keywords could lose a lot of
traffic. Although it depends on how much they reward
keyword "relevancy" vs Cash.

I guess cash is going to win and relevancy is taken into
account via CTR.

Crispin
 
Another change - looks like Yahoo is getting rid of it's keyword traffic tool according to the recent visit by Jensense

And it looks as though the demise of the keyword traffic tool will become a reality. I was also vocal against that one because it is a great free tool to send newbies too who want to start poking around into keyword research. We may have managed to convince them to keep it in place until they have a Panama edition of a similar tool in place that is accessible to all webmasters (not just advertisers).

I don't understand this move at all.
 
andrew their bid system will superficially raise earnings but only for a few months

they're taking one step forward and two steps back,
people will be spending less with them because the changes they're making are simply dumb.
 
Yahoo's superior conversion rate over crap-words will win over more customers in the long term and this new bidding system will help. Don't write yahoo off. Expect tons of advertisers to move to yahoo.
 
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