Will the Yahoo/Microsoft Partnership = More Precise Targeting in Yahoo?
Kindly allow me to pile on to the ten thousand articles that have already been written about this partnership. I’ve got a unique spin though; I’m going to be incredibly short-sighted about it.
We’re all aware of the fact that there will be all kinds of long-wave implications to this partnership. Marissa Mayer (Google’s VP) has been quoted earlier this week saying that the partnership will hinder innovation because there are less people “running in the race” now. I could easily argue that both Microsoft and Yahoo have been spinning their wheels in attempts to develop sustaining innovations that are just barely keeping up with Google for quite some time now, and I don’t think that cycle was going to change any time soon. Maybe the partnership will disrupt that.
What I want to know is, will the partnership lead Yahoo to be more precise in their paid search targeting? More specifically, will they begin to allow search advertisers to ONLY target Yahoo search traffic, and not force them to run ads on every Yahoo affiliate site in the universe.
Let’s take a look at some sample paid search data from one of our sites (data is over a one week period):

In the first column, Yahoo is providing over three times as many impressions as Google within the same time period. Strange considering Yahoo’s ~20% search market share, compared to Google’s ~65% (based on May 2009 ComScore data).
The reason for this is an inability to target only Yahoo’s search traffic. As opposed to running ads that are tightly connected to a user’s search terms, advertisers are forced to display “content” advertisements on websites that are a part of Yahoo’s network that may or may not be contextually relevant.
As a result, impressions skyrocket, click-through rates and conversion rates plummet, and ultimately the cost-per-conversion (the return-on-advertising-dollar-spent) suffers greatly.
The last row of data is what compels me to be shortsighted, and to beg someone at Microsoft to begin addressing the problem. Call it Live, call it Bing, call it Panama, but someone help Yahoo restructure their targeting model!
TECHNICAL NOTE:
There are site-exclusion methods that can be used within Yahoo’s platform that will begin to limit the websites within Yahoo’s network that your ads are displayed on. It’s not even close to an acceptable solution to the problem, but if you’re bleeding budget, look into those methods.
Comments(2)
That was when I hit my first dead-end.