As noted in my last post, Google’s latest paid search data demonstrates that power of ad quality and dynamic pricing requirements. This email just arrived from Yahoo – explaining that they are changing their paid search pricing models (a reaction to Google’s latest data? of course):

Pricing Update: Minimum Bids are no Longer Fixed at $.10

What you need to know…
• Sponsored Search minimum bids are no longer fixed at $.10.
• Content Match minimum bids currently will remain at $.10.
• Higher ad quality may help you receive lower minimum bids.
• Currently applies to U.S. accounts only.
• Sign up for a pricing update webinar.
• Log into your account regularly to check keyword status.

Starting today, the minimum bids for some Sponsored Search keywords are no longer fixed at $.10. Minimum bids can now be lower or higher than $.10. Content Match minimum bids currently will remain at $.10. Throughout the next week, you may start noticing new minimum bids on some of your keywords. You will be notified by email and within your account when the status of any of your keywords is affected.

The amount set as your minimum bid on a keyword in Sponsored Search can vary depending on multiple factors, such as:
• The number of bidders and bid amounts in the particular keyword market
• The quality of your keywords, or their relevance to advertisers, as measured by the quality of the ads associated with them

How it Works
• Your keyword is active—or eligible for display—when your current bid is equal to or greater than your minimum bid for that keyword.
• Your keyword becomes inactive if your bid falls below your minimum, and won’t be displayed unless your minimum bid is met.
• You’ll be notified when your bid is too low, and will have up to several days to adjust your bid.

Read more at Yahoo.

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