Spider's Latest

All change for Yahoo's minimum bids on sponsored search

Pay per click could cost less after Yahoo's announcement this week that it was changing the way it set minimum bids on paid search.

That's according to Janet Meiners, a writer for internet marketing blog MarketingPilgrim.com, who said that previously the minimum bid had never fallen below ten cents, "but with this change you could pay less per click".

Yahoo made the announcement via its website on February 27th, revealing that minimum bids will be based on quality and value rather than how much you pay, and will be set by individual keyword.

The search engine revealed on its blog that over the next few weeks it "will start calculating a variable minimum bid for some of the keywords you're bidding on".

According to Yahoo: "That means that sometimes the minimum bid may be lower than 10 cents. Sometimes it may be higher."

Yahoo likens the minimum to the reserve price set in an auction house, "set according to what is believed to be the minimum value of the product", with the greater the value or demand, the higher the starting bidding price. ADNFCR-1536-ID-18489111-ADNFCR