Yahoo introduces quality-based pricing

According to an announcement by Gaude Lydia Paez, Yahoo’s Director of Public Relations, quality-based pricing will first be rolled out to specific keyword marketplaces with more being added over the following weeks.

"We’re especially excited about this launch, as it’s one of many new capabilities that our new “Panama” search marketing platform enables us to build," said Paez.

The capability may be new to Yahoo, but Google implemented the feature over a year ago.

Quality-based pricing assesses the quality of a publisher’s traffic, based on that publisher’s ability to delivery more high-value potential customers to Yahoo advertisers. Criteria taken into consideration when assessing the level of quality are publisher conversion rates and traffic source.

Yahoo expects that quality-based pricing will save advertisers money by discounting bids according to quality while increasing ROI with better quality audiences. They hope these savings will be reinvested in Yahoo Search Marketing ad campaigns.

Tags: advertising, quality-based pricing, ROI, search marketing, yahoo