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Yahoo Adopts Ad Quality Ranking

Posted on 1.23.2007
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Yahoo just notified advertisers that on February 5, 2007, a new ranking model will be introduced - dubbed "Quality Index" - in the U.S. that considers an ad's quality and bid amount to determine an advertiseres rank in sponsored search results. According to the official email, "The new model is designed to help you spend less time in bidding wars and more time creating the most relevant, effective ads, which can help drive better results for your business."

The Yahoo Search Marketing "Quality Index" will replace the current method in which ads in search results are ranked by bid amount only (bid-to-position). Ad quality is determined by historical performance (click-through rate relative to competitors and normalized for position) and the ad's expected performance, which is determined by various relevance facrots considered by Yahoo's ranking algorithms.

Yahoo is recommending that you review your current max bids and indicated in the announcement that advertisers should keep in mind that they may be charged up to this max bid amount.

Other items of interest:
- Standard match type ads will no longer receive priority placement over Advanced match type ads.
- Fewer Sponsored Search results may now appear at the very top of the page for certain search terms.

Learn more about the new Ad Rank system.

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