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Yahoo! Changes The Way Ads Are Ranked: How To Bid Less And Outrank Your Competitors

Yahoo! Search Marketing (Yahoo alternative to Google Adsense) announced today they change the way ads are ranked in search results beginning February 5, 2007 in the United States. Now, not only bid amount, but also ad quality will determine an ad’s rank. How you can benefit from this and outrank your competitors while bidding less?

Here’s a quick summary of this important change, according to Yahoo! Search Marketing:

  • Both bid amount and ad quality will determine an ad’s rank in search results beginning February 5, 2007.
  • This will replace the current method, in which ads in search results are ranked by bid amount only (bid-to-position).
  • This is designed to allow you to focus less on competitive bidding practices and more on the quality of your ads.
  • By improving the quality of your ads and making them more relevant to users, you may be rewarded with a better ranking and/or a lower cost for your ads.

The following graphic illustrates a possible scenario how ads ranking may change after they apply that new model:

Yahoo new ad ranking model

What Is A Quality Ad?

Yahoo! determines ad quality by two factors:

  1. The ad’s historical performance – its click-through rate relative to competitors and normalized for position.
  2. The ad’s expected performance – determined by various relevance factors considered by Yahoo!’s ranking algorithms, relative to other ads displayed at the same time.

How To Increase Your Ads Quality

Meet Glyphius, the software that is able to boil down your ad into a simple score showing you how much your ad is similar to profitable ads and different from unprofitable ads.

Glyphius is very easy to use. You simply enter your ad text into it and match the ad against the words that are known to be successful and those that are known to be unsuccessful. Glyphius gives you a score for that version of your ad. You can then test alternatives to see which versions score best.

Using Glyphius you can seriously improve your ads click-through rate, stop spending money on bidding wars and create the most effective ads, which can help drive better results for your business.

Glyphius ad scoring software

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