Yahoo! Search: New Minimum Bid Factors

eTaildTail friends over at SearchEngineLand posted some valuable information in regard to Yahoo! Search CPC pricing and I thought it was important for readers of eTaildTail to be aware of those changes.

-- Chip Arndt

From SearchEngineLand:

"Yahoo recently announced that they are moving away from a $0.10 fixed minimum CPC to a variable minimum bid. However, there are some differences in how Yahoo calculates minimum bids tcompared to AdWords. These differences are important to note as you switch between these PPC engines so that each account is properly optimized for each engine according to how the bids are calculated

Yahoo's New Minimum Bid Factors

Yahoo uses two main factors for determining minimum bids:

• value of the keyword
• quality

The value of the keyword factor will frustrate many marketers. This value is calculated by many indicators which include the number of advertisers and those advertisers' bids. This means that for keywords with high competition, the keywords can have higher minimum bids. If there are a few bidders, but they are bidding high amounts, the minimum bids can also be different.

The second factor..."

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