Yahoo Search Marketing is Expensive than Google Adwords

November 20, 2008 by Abhishek Bhardwaj
Filed under: Search Engine Marketing 

It’s been around 6 months since Yahoo launched their new Panama-based Search Marketing Platform and things have changed for them, thanks to the new Yahoo Search Marketing (YSM) platform (formerly Overture-based).

YSM is no longer out of the consideration set of search marketers because it now features better reporting, tracking, targeted ad delivery and a lot more control over your campaigns. Although it is not thought to be as good as Google Adwords but it is a good alternative to reach out to an extra bit of audience. The days when YSM used Overture’s serving technology advertisers used it as a cheaper alternative. That is not the case anymore because YSM will now cost you almost the same or more than Adwords.

YSM takes the Revenue Route

Yahoo! has now resorted to a new pricing structure wherein they have a fixed minimum bid price for high traffic keywords. The minimum bid price on Adwords is determined by the amount of competition. High traffic keywords are ought to attract more competition and higher bids due to the ever ongoing bid war.

So if you want to get traffic from Yahoo then you better be including those highly searched keywords as well and since most of the clicks would come from those expensive keywords your average CPC will shoot up. This has somehow caused the CPC’s of my YSM campaigns to exceed that on Adwords. FYI, I use the exact replica of my Adwords campaigns on YSM!

How to get lower CPC’s on YSM?

1. Add more keywords and try keyword combinations. You can use both the keyword tools from Adwords and YSM.

2. Go for better performing ad copies. This will result in higher CTR’s and better Quality Index (analogous to Adwords’ quality sScore. On YSM quality index is calculated at ad copy level but on Adwords its calculated at keyword level). Better the quality index the lesser you’ll pay for higher positions and the clicks will be cheaper.

3. Use only related keywords in an ad group. Try and demarkate keyword sets by creating different ad groups and different ad copies for every ad group. So focus on quality of ads and the relevance of those ads for their ad group.

Yahoo! Inc. might have found a way to generate some more revenue by resorting to a fixed minimum pricing model but what they should be working on is increasing their search volumes. By the way they are doing an aggressive campaign in India to promote their new SERP format – Glue Page which contains all information on a topic glued to one single page.

Bookmark:
  • Technorati
  • Digg
  • del.icio.us
  • StumbleUpon
  • LinkedIn
  • Facebook
  • Twitter
  • Mixx
  • Yahoo! Buzz
  • Reddit
  • MySpace
  • NewsVine
  • IndianPad
  • Google Bookmarks
  • BlinkList
  • Live
  • Simpy
  • email

No related posts.

Comments

One Response to “Yahoo Search Marketing is Expensive than Google Adwords”

  1. Pingback on November 25th, 2008 5:08 pm

    [...] Abhishek Bhardwaj wrote an interesting post today onYahoo Search Marketing is Expensive than Google AdwordsHere’s a quick excerptIt’s been around 6 months since Yahoo launched their a new Panama-based Search Marketing Platform and things have changed for them, thanks to the new Yahoo Search Marketing (YSM) platform (formerly Overture-based). … [...]

Feel free to leave a comment...
and oh, if you want a pic to show with your comment, go get a gravatar!