Yahoo trotted out a new pricing structure this week and the motto is quality, over quantity.
Advertisers will pay Yahoo based on the quality of their distribution partners’ Web sites where their ads appear, rather than a one-size fits all rate for traffic, according to a Yahoo blog posting.
“As part of the evolution of the Yahoo Search Marketing advertising system, we now include an assessment of the quality of our publisher’s traffic when you are charged for a click from that source,” Yahoo stated in its FAQ. “Depending on the quality of the traffic from the partner or publisher where the click came from, the cost of your click can be automatically discounted by a certain percentage.”
Quality will be based on a publisher’s ability to deliver “more interested, high-value potential customers” to advertisers, such as the percentage of traffic that ultimately converts into paying customers of that advertiser.
And while Yahoo notes it will automatically discount the price it charges for certain Web sites, it will not increase the rate on the more attractive sites. The search company, however, advises advertisers to consider bidding more on certain keywords, in order to get a higher position on search results.