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December 21, 2006

No More Grandfathered Bids for Yahoo Panama Users

posted by MR WAVETHEORY at 12/21/2006 08:04:00 PM
I was trolling around to learn more about Panama, the new Yahoo Search Marketing Platform. There are many big changes and improvements in Panama completed by the engineering team at Yahoo! Inc. (Nasdaq YHOO)

1) No More $.01 Grandfathered Bids.
One of the key changes is that Yahoo! will not be honoring the grandfathered bids which were as low as $.01.

Important Note Regarding Grandfathered Bids :
In addition, our current minimum bid requirement of $0.10 will be enforced after an account is upgraded. This will impact your keywords that are grandfathered to bids below $0.10.

Many buyers who have old Overture accounts have been able to get around the minimum bid requirement of Yahoo because their minimum bids were grandfathered in when Yahoo! bought Overture. However, Yahoo is finally turning it off. That means keyword arbitrageurs who have been bidding $.01 per click will have to bid $.10 per click. The result: More revenue for Yahoo! + Tough times for the arbitrageur industry.

2) DMA Geotargeting. Another big feature improvement is Geotargeting based on States or by DMAs as defined by Nielsen Media Research. You can include and exclude different geographic regions down to the state level in the US and down to Zip code. It's very easy to use. Just point and click on the state or type in the zip code and you're ready to go.

3) Overture Bid Tool Being Removed. Another major change in the new Panama is that Yahoo! has removed the link to the Overture Bid Tool from the Yahoo! Search Marketing Home Page. The Overture Bid tool allowed advertisers to see how much an advertiser was bidding for a keyword. Sources at Yahoo! tell me that the Overture Bid Tool will be going away. That means advertisers will no longer be able to log onto and check minimum bids required for a keyword. I think one reason for this is that Yahoo! is implementing a smart pricing algorithm that takes into account not only the bid price for a keyword for the click thru rate of the ad.

All of these are pretty major changes for Yahoo! The driver of course for all these changes is revenue improvement. Whether these changes work, the proof will be in the pudding.

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