Yahoo! Changes Sponsored Search Minimum Bid Policy

Yahoo! Search Marketing announced that minimum bids for ‘a number of Sponsored Search keywords‘ would no longer be fixed at $0.10. Although they could end up lower than a dime - your minimum bids might also end up more expensive - depending on the quality and value of the keyword.

Minimum bids vary depending on keyword relevance measure by the quality of the associated ad, as well as the number of advertisers and bid amounts for that particular keyword market.

If your bid falls below the minimum set for that keyword, the ad will not be displayed and you will be notified and given some time to make changes to your bid.

Yahoo stated that the change was designed to improve their users search experience by rewarding advertisers for better quality with lower entry points into keyword markets.

I think this may prove to be an excellent opportunity to save some money on your pay per click advertising. So, if you haven’t done so lately, I highly recommend that you do a thorough review of your Yahoo! Search Marketing ad campaigns soon and beef up the quality of those ads that have so far been under-performers.

By the way, Content Match minimum bids currently will remain at $.10.

To learn more about this topic, check out the YSM Blog “Reserve Bids” post.

Popularity: 9% [?]