What Google Deal? Yahoo! Tweaks Ad System (YHOO)


While Yahoo continues flirting with notion of outsourcing its search to Google, it’s still playing around with its platform. Today the company altered the way advertisers buy ads by taking away the fixed minimum bid on the sponsored search keywords.

Originally advertisers would start the bidding for those keywords at $.10. Now the minimum will be set mostly on two factors: the previous click-through performance of the company bidding, and the value of the keyword itself. Yahoo! says that the bid could be higher or lower than $.10 based on the two factors.

So what does this mean? We’re not sure yet. TechCrunch linked to some anecdotal evidence from advertisers who say their minimum bids have doubled or quadrupled overnight. But that’s just a few – and it doesn’t say anything about what the revenue implications will be. Any Yahoo! advertisers out there affected by the change? Let us know in comments.

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