Lee Odden

Yahoo Search Marketing Launches Quality Based Pricing

Earlier today Yahoo Search Marketing announced they will now provide free, open access to the “Panama” search marketing application program interfaces (APIs) through the launch of the Commercial API Program. Commercial clients (big agencies) will also be offered optional fee-based, value-added services that come in three flavors: basic, advanced and elite.

Yahoo’s been busy today, because this evening I got the heads up Y!SM is rolling out quality based pricing across it’s paid search and contextual advertising networks.

Here’s the lowdown on quality based pricing from Yahoo:

“Essentially, it assesses the quality of a publisher’s traffic based upon the publisher’s ability to deliver more interested, high-value potential customers to Yahoo!’s advertisers. A few of the factors considered by quality-based pricing include publisher conversion rates, traffic source and implementation type. Depending on the quality of a given publisher’s traffic, the cost of an advertiser’s click can be automatically discounted by a certain percentage.”

Basically it’s a trickle down theory where Yahoo hopes the increased ROI and savings will motivate advertisers to experiment with their savings and reinvest in Yahoo Search Marketing campaigns.

More info on the new pricing model over at the Y!SM Blog.

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