As promised last week, Yahoo! is rolling out their new ranking model today for its paid search advertisers. Gone is the highest price gets the highest position model and what is replacing it is a system that operates in much the same way as Google AdWords does.
Mark your calendars – as promised, February 5th is the date set that Yahoo! will switch over to a new ranking algorithm for their PPC ad platform. In the same way that Google’s AdWords works, Yahoo! will now factor in the ad’s quality as well as the bid amount. The old system awarded the highest position to whomever spent the most. Now they will consider how well the ad actually performs along with actual bid amount for each ad. This has been expected since Yahoo! started converting advertisers to their new platform but now has an actual date attached to it.
As many Yahoo! Search Marketing advertisers continue to wait for the implementation of the new ad management platform dubbed Panama, some changes have been rolled in the way bids will be managed. This has been done in order to help prepare advertisers for the new platform. The changes will affect the Sponsored Search Manage Bids page so that all advertisers – both those who have upgraded and those who have not – will have equal access to the same relevant bidding information.
At the recent Search Engine Strategies conference in San Jose, Yahoo! Search Marketing demonstrated some of the new features of the ad platform that is due to be released sometime in the fourth quarter. I was able to sit in on this “luncheon” session and took a few notes. Here is what I was able to scratch down as they showed us a live demo of the product.