Minimum Bids In Yahoo About To Change

Feb 26, 2008 at 7:00pm ET by Barry Schwartz

Yahoo announced that the minimum bid of $0.10 within the search network will no longer be a true minimum bid. Yahoo is changing it so that the minimum bids can be lower or higher than $0.10. This does not impact the content network.

What makes a minimum bid go higher or lower? Two factors:

(1) Value – the number of bidders and their bid amounts in a particular keyword market (2) Quality – the relevance of keywords, or how frequently users click on the ads associated with them relative to competing ads

Tips on how to keep a low minimum bid?

Here are some quick tips for how advertisers can best prepare for the changes:

- Get to know your keywords
– It is important to know which keywords work best for your business
– Group relevant keywords together
– Make the right bids and monitor
– Use the Advanced match type to get broader exposure in search results
- Maximize the quality of your ads
– Quality plays an important role in how you get charged
– Learn how to track your quality
– Utilize ad testing with optimization
– Group relevant keywords together in your ad groups
– Continually monitor for any changes
- Stay updated to the Account Interface
– Become familiar with new tools that can make managing your keywords simpler.

Here are screen shots of the interface changes that apply to this:

- Pop up image one - Pop up image two

Barry Schwartz is Search Engine Land's News Editor and owns RustyBrick, a NY based web consulting firm. He also runs Search Engine Roundtable, a popular search blog on very advanced SEM topics. Barry's personal blog is named Cartoon Barry and he can be followed on Twitter here.

See more articles by Barry Schwartz >

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