Monday, June 4, 2007
Yahoo! Panama Quality-Based Pricing
Finally, Quality Score discounting is happening on Panama. Much talked about by sales people in Asia's major markets, we look forward to seeing some serious discounting in our TW, HK based campaigns.
Apparently, these few factors affect quality-based pricing :
1) conversion rates
2) traffic source
3) implementation type
Depending on the quality of a given publisher’s traffic, the cost of an advertiser’s click can be automatically discounted by a certain percentage. Personally, am not too sure what #2 and #3 means. Certainly more experimentation and close watch on bidding is to be done.
"At 6 p.m. PT June 4 2007, Yahoo! Search Marketing will begin to roll out quality-based pricing across its sponsored search and contextual listings marketplaces to help increase ROI and reduce search marketing costs for advertisers, according to their Director of Public Relations Gaude Lydia Paez."
(Source: http://blog.searchenginewatch.com/blog/070604-211818)
Apparently, these few factors affect quality-based pricing :
1) conversion rates
2) traffic source
3) implementation type
Depending on the quality of a given publisher’s traffic, the cost of an advertiser’s click can be automatically discounted by a certain percentage. Personally, am not too sure what #2 and #3 means. Certainly more experimentation and close watch on bidding is to be done.
"At 6 p.m. PT June 4 2007, Yahoo! Search Marketing will begin to roll out quality-based pricing across its sponsored search and contextual listings marketplaces to help increase ROI and reduce search marketing costs for advertisers, according to their Director of Public Relations Gaude Lydia Paez."
(Source: http://blog.searchenginewatch.com/blog/070604-211818)
Comments:
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It’s definitely an interesting move on Yahoo’s behalf.
However, my question is how will they measure the quality of the traffic sources.
They claim to use the conversion rates, but those depend on so many factors outside the traffic source (e.g. landing pages, keywords, ad text, etc.) that I don’t know how reliable they are.
Plus, where would they even get all of that data from? Not all of the advertisers are using their conversion tracking and I don’t know if all of them would be thrilled to have their data used for Yahoo’s own reasons.
It would just be interesting to see more details about that.
Boris Mordkovich
www.adwatcher.com
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However, my question is how will they measure the quality of the traffic sources.
They claim to use the conversion rates, but those depend on so many factors outside the traffic source (e.g. landing pages, keywords, ad text, etc.) that I don’t know how reliable they are.
Plus, where would they even get all of that data from? Not all of the advertisers are using their conversion tracking and I don’t know if all of them would be thrilled to have their data used for Yahoo’s own reasons.
It would just be interesting to see more details about that.
Boris Mordkovich
www.adwatcher.com
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