As of Monday, February 5th, Yahoo! implemented a new Search Marketing Ranking Model to ensure that more qualified ads are being served to searches, and will now not necessarily show the ads that have the highest price tag assigned to them. Yahoo! hopes that this new ranking model will allow for a more relevant search experience to users, more valuable customer leads to advertisers and additional opportunities to its distribution partners.
Until now, Yahoo! ranked it ads solely on the bid price. Basically, the higher an advertiser bid, the higher the ad would appear within the search results. When the new ranking model took effect on February 5th, advertisers noticed that both bid price and ad quality combined would determine at what position an ad would appear within the search results. Yahoo! announced that quality of an ad will be determined by its historical performance in the new system and its expected performance relative to other ads displayed at the same time. Ads of better quality will more than likely receive higher placement within the search results.
By making this change, Yahoo! is hoping to provide advertisers with industry-leading marketplace visibility and features that will allow them to better understand their performance and make more informed marketing decisions.
What does this mean for existing Yahoo! advertisers?
Yahoo! has sent out, and will continue to send out, upgrade invitations to the advertisers in the U.S. throughout the first quarter, and anticipates that all U.S. advertisers will be upgraded by the end of the second quarter. Advertisers who have upgraded to the new system can gauge the quality of their ads by viewing the prominently displayed quality index within the application. Yahoo! also provides advertisers with an estimated average position and estimated forecast of clicks for their ad campaigns, based on budget allocation and ad quality.