There are a few things that worry me about this deal.
1. "Yahoo was not currently monetizing this area". This was a phrase in the sheet that I received from Yahoo! They are claiming that with this new partnership, they will now be able to monetize this area of the page.
I read into this that Yahoo! only is interested in making more money. I am a full believer in the theory that Yahoo was not able to monetize this area because their traffic was of poor quality. Advertisers (myself included) are always looking for traffic that converts. Am I wrong to assume that if Yahoo! traffic converted better, they would have no problem monetizing the landscape of their search pages?
2. Yahoo! minimum bids. As we all know, Google has done away with their minimum bid requirements, while Yahoo! seems to be increasing theirs. In fact, I've learned that the minimum bid requirements can be changed as often as a few times a month, depending on vertical and kw's. I have not heard or read anything that references if Yahoo! minimum bids will be required for the Google ads. Has anyone heard anything to this? I would fear that Yahoo! would require some form of an artificial floor upon their bidding platform.
3. This is just an inference, but it almost seems as Yahoo! is throwing in the towel within search innovations. It bothers me that they are not working on improving the quality of their traffic, their search technology, or their user experience. It comes across as they are looking for more clicks.
To summarize my thoughts on this:
More relevant ads shown to the same poor traffic increases my cost while lessening my conversion.
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