Yahoo Introduces its Own Smart Pricing

June 4, 2007 @ 6:21 pm · Filed under Advertising, Contextual Ad Networks, Yahoo Publisher Network

Yahoo! today announced to its publishers and advertisers that it has introduced “Quality Based Pricing”. This seems like it is very similar to Google’s Smart Pricing.

From the Quality Based Pricing FAQ:

What is quality-based pricing?

As part of the evolution of the Yahoo Search Marketing advertising system, we now include an assessment of the quality of our publisher’s traffic when you are charged for a click from that source. Depending on the quality of the traffic from the partner or publisher where the click came from, the cost of your click can be automatically discounted by a certain percentage.

This means that many publishers will see the amount they earn on each click go down. The initial impact may be limited because Yahoo is introducing it to a limited set of keywords, but the number of keywords effected will increase over time.

There are constant complaints about smart pricing in AdSense forums, I have a feeling we will start seeing similar complaints on the YPN forums as well.

I have an Smart Pricing FAQ that tries to explain Smart pricing as much as possible.

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