At the end of February Yahoo! Search Marketing announced that minimum bid prices for ads would not be set. Instead the minimum price you pay for each click would be based on value and quality. The changes start next week and will be gradually rolled out.
That means the automatic 10¢ minimum bid will be discontinued. Minimum bids will vary rather than be set. Instead higher quality ads will start paying less per click. If your ad is low quality your minimum bid will be higher. So you can’t buy your way to the top, you have to earn it – with clicks and a valuable landing page.
Improving the quality of your Yahoo! ads, and make them more relevant to searchers, will get you better rankings and you’ll pay less too. Yahoo followed Google’s lead last year when they introduced the concept of a quality score.
If you want to pay less, regardless of your ad quality, MSN still let’s advertisers pay for higher placement – and their minimum bid is 5¢.