Yahoo Drops Minimum Bid

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Yahoo! Search Marketing dropped the minimum bid amount on a "large number" of sponsored keywords.

"Given that certain business categories have been impacted by the current economic conditions, we’ve reviewed minimum bid amounts on a large number of Sponsored Search keywords and reduced the minimum bids on many terms. This review process is a part of our ongoing efforts to optimize our search marketplace."

It is important to note some changes to minimum bids have already taken place. When you log in and review your account, some keyword bids that were once below the minimum bid requirement may now be active if their minimum bids were lowered.

This means those keywords will be automatically reactivated and your ads will be displayed. In this instance it's important to make sure your spending limits allow for additional traffic. Good news for sure, but a little notice would have been nice.

It is important to remember the minimum bid (thanks to Quality Score) is only one factor in the cost advertisers pay per click. Ad quality and term competitiveness are equally important to your listing position.

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