Yahoo! Product Submit might use Auction Model for its Fee Structure

May 7, 2008 | 1,761 views | by Navneet Kaushal
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Till now Yahoo! Product Submit had a direct fee structure, which meant that it charged a fixed flat category price from its advertisers. However, according to a thread posted at Webmaster World, Yahoo! is planning to move towards the bidding structure for its Yahoo! Product Submit service.

A post at Webmaster World reads, "Yahoo Product submit aka Yahoo Shopping just sent me an email saying that they're converting to Bid based advertising instead of flat rate PPC.

Why would anyone bid to offer the lowest price? Are they going to hide people who bid low and offer a bargain because last time i checked "CSE" isn't bind-rank driven for position as much as it is cost driven towards the consumer.

Terrible if you ask me. They can't even give stats on the existing system and lately 90% of my clicks have been 100% bounce rate and from countries i don't even ship to. Why would anyone want to bid on that? "

This new bidding structure is similar to Yahoo Search Marketing and Google AdWords. There are two possible reason for this Yahoo! Decision. Firstly, Yahoo! could be aiming at generating more revenues by using the bidding system as a powerful tool. Secondly, it might also be planning to consolidate all of its search marketing programs and services under the umbrella of a singular pricing system.

Yahoo's intentions become a bit clear with this E-mail excerpt that it had sent to one of the Webmaster World's users. (This excerpt has now been removed from Webmaster World, due to their Terms of Service [TOS].)

"Dear Product Submit advertiser,

We are pleased to announce the upcoming launch of a bidded marketplace. With this change, there will be modifications to your Master Terms & Conditions and Program Terms, which will be detailed in a future email notice that you'll receive in the next 30 days.

We expect the bidded marketplace to have an impact on your day-to-day business. Therefore, we advise you and your team to begin planning for the transition to a bidded model.

As part of this launch, we are expanding the number of product categories and improving reporting within your Product Submit account.

These changes are designed to help you to:

- Better influence the level of traffic you receive from Yahoo! Shopping
- Gain more control over optimizing your product listings
- Gain better visibility into your category performance

Stay tuned!

The Yahoo Product Submit team"

This is a dilemma for many advertisers who would be eagerly awaiting a Yahoo! Official response or the announcement. It would be better that Yahoo! comes out with its views on this subject, as there are going to be a lot of anxious advertisers with a lot of questions.

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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 Yahoo! Product Submit might use Auction Model for its Fee Structure
4.thumbnail Yahoo! Product Submit might use Auction Model for its Fee Structure