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Yahoo Raises Minimum Ad Bids Overnight
Written by Allen Stern - April 18, 2008
Yahoo posted an announcement yesterday that they have removed the minimum bids on keyword advertising. The company stated that bids could go both up or down in price. The two factors that Yahoo stresses in determining the minimum bid for a term are: quality and value.
Search Engine Roundtable is reporting on a variety of advertisers using Yahoo getting jacked up on their minimum bids overnight. Advertisers noticing changes (and reporting on them) all note a 2-4x increase in the bid amount. One advertiser said, "Yahoo just raised my minimum bids by 3 -4 times on many keywords.. they must be out of their minds."
So if your quality isn't there, you will pay a lot more now, but they will still take you. I find this interesting - if you can afford it, they don't care so much about the quality.
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It seems Yahoo is making poor choices all around these days.
If they had an reliable way to determine quality, this might work. But they don't. So the net effect is: artificially inflated bid prices applied to a random subset of your keywords.
Makes me think Yahoo is just trying to squeeze advertisers for more money so they can appear more valuable to MS on their next earnings call.
But I think this strategy will backfire.
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