Yahoo! has announced that on Feb 5th, they will be introducing a quality score to the Yahoo Search Marketing ad system, “Panama”. To date, placement of ads on Yahoo and their network have been based on bid price alone. From the press release:
“The quality of an ad will be determined by its historical performance in the new system and its expected performance relative to other ads displayed at the same time. Ads of higher quality will generally receive better placement on the results page.”
Advertisers will be able to see the “quality index” for their ads within Panama along with an estimated average position and estimated forecast of clicks for their ad campaigns, based on budget allocation and ad quality.
Google AdWords also offers a quality score that measures quality and relevance of ads to determine the minimum cost per click and is based on clickthrough rate, relevance of ad text, keyword, and landing page.
Adding a measure of quality to Yahoo’s Panama search advertising system brings the hopes of an improved user experience, better quality sales/leads for advertisers and an improved overall marketplace according to Tim Cadogan, Yahoo!‚Äôs vice president, search marketing.
Panama was a big jump for Yahoo and I think the continued rollout of enhancements as well as attention to customer service will tell the tale as to how successful the transition and system performance will be for advertisers.