I received an email from "Yahoo Publisher Network" with their announcement to start implementing "Quality Based Pricing". This looks to be their version of Google’s Smart Pricing. Below is the email sent out from Yahoo.
|Introducing Quality-Based Pricing
Web publishing is a circular business. You produce a carefully crafted resource thatâ€™s useful and entertaining to your users. You offer contextual ads from a trusted sourceâ€”thatâ€™s usâ€”that strengthen your brand and message and, hopefully, bring you revenue from qualified clicks, which in turn can benefit the advertiser. Thatâ€™s the formula, and weâ€™ve always thought it a fair one.
In short, we like to think that we provide quality, for you as a publisher, for our advertisers and for the user. Itâ€™s a big circle of value. The circle can get warped, however, when users click on ads that donâ€™t meet their needs, which can lead to poor conversions for advertisers.
Itâ€™s an important step that reinforces our overall commitment to deliver long-term success for our publishers, a high-quality experience for users, and high-value traffic to our advertisers.
This may have an impact on your business. When you provide quality traffic to our advertisers, this in turn may lead to better click revenue for you. Conversely, driving poor quality traffic to our advertisers may lead to reduced revenue.
So what is this new "Quality Based Pricing" and how will it affect Yahoo’s Publishers and Advertisers? As taken from Yahoo’s 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 publisherâ€™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.
Unfortunately, this likely means most publishers will see a decrease in the amount of earnings they earn per click. I have been a member of the Yahoo Publisher Network almost since it first went live. The earnings from the program during the end of 2005 were simply the most amazing payouts I have seen, and have made Yahoo my largest earning program to date. Over the past year, Yahoo Publisher’s have seen a dramatic decline in earnings and now it looks like we are possibly headed to even further declines. Nothing great lasts forever, but this can be compared to the same process we saw with Google Adsense when it first went live.