Minimum bids no longer fixed at $.10 for Sponsored Search
If you go to any auction, whether it’s Sotheby’s, eBay or your rural county’s hog auction, there’s usually a reserve price
(or minimum bid) set according to what is believed to be the minimum
value of the product. It’s their way of making sure that no one walks
away with a cheap Van Gogh just because people aren’t lifting those
paddles fast enough.Following the auction model, we are changing the way we set the
minimum bids required to participate in a Sponsored Search keyword
market. In the next several weeks, we will start
calculating a variable minimum bid for some of the keywords you’re
bidding on. That means that sometimes the minimum bid may be lower than
10¢. Sometimes it may be higher. Content Match minimum bids currently
will remain at 10¢.
Source: Yahoo Search Marketing Blog
Two right moves in 24 hours (first was Open Search announcement). What is going on there? I believe they are thinking dynamics, not functionalities. They need to satisfy certain people and thinking of these people, these moves, functions, are simply the natural solution. The lesson here, focus on dynamics, not functionalities.
So I just posted my reaction to Yahoo’s announcement and then came across your post. I see this change differently than you:
http://domainnamewire.com/2008/02/27/yahoo-creates-its-own-black-box-for-advertising/
—-answer—-
Andrew,
You are focusing on ideals (transparency), they are focusing on business, creating an inflow/outfolw efficient dollar cycle, not with those who think of ideals nor those who criticize them, but with those who think bottom line, those who understand PPC ROI. Similarly, there’s a good book out there called “Made To Stick” where the authors describe Southwest Airlines’ core, and their resistance to serve good food on flights.
Cheers
Sahar
thanks for the tip, Sahar, another good one!
That’s a fair point. I just wonder if advertisers will get more frustrated and throw in the towel.
i want to change my bid