YSM Removes Min. Bidding

[michael.jozaitis]

Piece of news out a few days ago from our friends over at Yahoo. They've recently removed their .10 minimum bid for YSM Sponsored Search. The benefits of this are pretty stellar - advertisers now have the ability bring in ever lower cost acquisitions, increase keyword lists (and potentially volume) at a very low cost while maintaining similar (or identical) budgets. Keyword costs are derived though a variety of factors - market competition / saturation, ad quality, landing page quality & a whole host of other factors. Removing these minimum bids will only further help advertisers by putting one factor in better visibility

Also, who doesn't like lower Ad costs? I know i don't mind at all

Below is the YSM's Official coverage of the change:

Yahoo! Search Marketing Blog » Reserve Prices

I'm looking forward to working with this for my clients which are currently on the platform

[cactus_joe]

Seriously!!! That is really awesome!!!

[cactus_jeanl]

Your minimum bid can do down below $0.10 assuming you have stellar quality ads.

I think this will be a great improvement & will make it easier to transport data back and forth from Google to Yahoo.

[MikeUSMC]

There seems to be a lot of negative feedback on the Yahoo blog on this..People seem to think that this will encourage bidding wars and thus, actually drive prices UP on words that otherwise be lower. Any thoughts on this?

This new yahoo structure is bringing bid requirements closer to those met by Google, who introduced their similar changes in 2005. Yahoo however, will notify users when their bids are about to fall below the minimum bid requirement so they can make the necessary changes. Find out more at: Yahoo: Minimum bid price changes - Search Marketing - BizReport

[cactus_jeanl]

Originally Posted by MikeUSMC

There seems to be a lot of negative feedback on the Yahoo blog on this..People seem to think that this will encourage bidding wars and thus, actually drive prices UP on words that otherwise be lower. Any thoughts on this?

I've been seeing this on some blogs as well, but I'm not sure I agree completely. I guess I'm taking a 'wait and see' approach. What concerns me a little is that some keywords are now going to have higher minimum bids. Users who don't have their ad groups/ads/keywords optimized well might find themselves paying more.

This is something I'm still reading up on, so I'll pass along any news as I find it!