Smaaz’s Blog

Yahoo’s New Ad Ranking System Is Live

February 5th, 2007

Yahoo’s new ad ranking model, called Panama, was rolled out in the U.S. today. The main feature of Panama is, that Ads in search results will be ranked by both bid amount and ad quality. This change, which will impact all advertisers, is designed to allow you to focus less on competitive bidding and more on the quality of your ads. By improving the quality of your ads and making them more relevant to users, you may be rewarded with a better ranking and reduced cost for your ads.

Panama will determine an ad’s quality by:

• Historical performance - the ad’s click-through rate relative to its position in search results.
   
• Expected performance - determined by various relevance factors considered by Yahoo!’s ranking algorithms, relative to other ads displayed at the same time.

I think, this is a very important step for Yahoo!, to catch up with Google’s Adword program.

Entry Filed under: Yahoo!