Archive for May, 2008

Yahoo Search Marketing’s Panama… eh…

May 22, 2008

We recently attended a ‘webinar’ that brought you up to speed on Yahoo Search Marketing’s changes to Panama, their pay per click advertising platform that’ they’ve modified from the simple brilliance of Overture, which they bought way back when.

The big change is that they’ve done away with the 10 cent minimum bids.  They used to be 5 cents, but that was a long while ago.  (Google is still 5 cents.)  Now, there are a number of factors that contribute to your (that’s YOUR) minimum bid for a given keyword.  The ad copy, the landing page and other factors go into calculating your ‘quality index score’ (we think), and this somehow calculates YOUR minimum bid.  We keep saying ‘YOUR’ because as we understand it, two users who bid on the same keyword could have a different minimum bid.  Imagine if you went to the grocery store and discovered the guy in front of you paid a different price for Tide with bleach based on the number of people in his family.  So, the bottom line that we took away from this change is that different users are paying different amounts for the same product.  We could see how they could say it’s a different product, because both ads can’t be served in the same spot – meaning, someone has to come up first, second, third, so on…

The crazy part is that some minimum bids for particular keywords are out of control – or at least we assume they’re out of control for everybody.  We’ve seen keywords with minimum bids that were over 3 dollars.  Who could sustain that?
Oh well.  We’re doing the best we can.  Can’t wait to here what goodies the Ask webinar has in store!  And we didn’t even mention how unmanageable we find the Panama interface (but, maybe that was the idea – they saw Google’s interface and said, “This looks hard to manage!  Let’s get us some of that!”)

Have a nice long Memorial Day weekend!

Happy Belated Victoria Day!

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