Posted June 4, 2007 8:56 pm by with 2 comments

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Yahoo has just rolled out quality-based pricing for Yahoo Search Marketing, effectively discounting certain CPCs on the Yahoo Publisher Network (similar to Google’s smart pricing).

Here’s the announcement…

What is quality-based pricing? Essentially, it assesses the quality of a publisher’s traffic based upon the publisher’s ability to deliver more interested, high-value potential customers to Yahoo!’s advertisers. A few of the factors considered by quality-based pricing include publisher conversion rates, traffic source and 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.

Quality-based pricing will help ensure that traffic from Yahoo!’s network is priced in a manner that is consistent with the quality it delivers to advertisers.  At the same time, providing higher ROI and discounted bid should allow advertisers the flexibility to experiment with their savings and re-invest in their search marketing campaigns on Yahoo!. 

Yahoo is making the implement in phases, over the coming months.

  • I think Yahoo needs to get their ad targeting improved before they start punishing people for not converting well. I think their ad targeting is a big reason they aren’t converting well and there is nothing that the publishers can do to fix this – it is a Yahoo issue that should be dealt with first.

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