Quality Based Pricing Is For Advertisers Gain, Pleads YSM!

Jun 7, 2007 | 2,724 views | by Navneet Kaushal
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After a thread at Search Engine Watch showed some aggravated, and disgruntled webmasters, Michael Mattis at the official Yahoo! Search Marketing blog says, the motive of Quality – based pricing was for “the purpose of using the knowledge we gain about publisher conversion rates to raise prices on clicks from high-converting publishers”.

Discovery, a harried Webmaster writes:

Why would Yahoo want to stick its head into a beehive when they were just starting to break away from 2 years worth of negative publicity?From what I understand of "Quality based bidding" this is a loser from any angle you look at it.The publisher – Yahoo is going to control the value of my clicks based on what? How well the advertiser's site performs? What advertisers consider to be a conversion? The Advertiser – Yahoo is going to base my bids on what? How the rest of the advertisers are converting at that particular publisher? According to what standard? What is a conversion, according to which industry, whats going to stop companies from gaming the system? If Yahoo is struggling to understand what we want I'll lay it out real simple like: We want to control our own publisher network. Show us every referring click and let us include and exclude the publishers we want to. Same goes for the publishers, let them see all advertisers and include exclude as they see fit. Then Advertisers (not YSM) will adjust what we want to pay for each publisher, according to OUR internal performance stats and marketing goals. Profit, Margin, or Branding. By giving this level of control to advertisers, YSM would be in a good position to ask advertisers to state their industry and objectives for each campaign. With these 3 pieces of info YSM could then quantify that data into a somewhat accurate assessment of publisher performance according to bid prices, industries and marketing goals. I would think it would be a huge advantage for a flower shop owner new to YSM to be able to look and see what are the top 100 publishers in the YSM network for the floral industry?

Quick to respond, YSM's official blog writes:

Sorry to ruin the fun of a good conspiracy theory, but we really did launch QBP to help provide better ROI to advertisers—you guys and gals who are this company’s life blood. It’s not meant to raise the price of clicks. In fact, we are not increasing the amount you pay for traffic from high-quality sites, and you will never pay more than your maximum bid amount. You may pay less, but not more. We’re trying, with our advertisers and our publishing partners, to encourage greater participation in our marketplace, and, in turn, provide even more relevant results to our end users

For a better understanding, read YSM's FAQs.

4.thumbnail Quality Based Pricing Is For Advertisers Gain, Pleads YSM!

Navneet Kaushal

Navneet Kaushal is the founder and CEO of PageTraffic, an SEO Agency in India with offices in Chicago, Mumbai and London. A leading search strategist, Navneet helps clients maintain an edge in search engines and the online media. Navneet's expertise has established PageTraffic as one of the most awarded and successful search marketing agencies.
4.thumbnail Quality Based Pricing Is For Advertisers Gain, Pleads YSM!
4.thumbnail Quality Based Pricing Is For Advertisers Gain, Pleads YSM!