On Monday February 5th, Yahoo! will be going full speed ahead with the US based relaunch of Yahoo Search Marketing and its new ranking model which will focus on advertiser quality, relevancy, bid price and performance instead of the current bidding only placement system.
As a result of the new Yahoo Search Marketing ‘Panama’, Yahoo feels that they will still be able to provide relevant search results for users, which adding more value to their advertising base.
When the new ranking model goes into effect, both bid and the ad’s quality together will determine where an ad appears in the search results.
The quality of an ad will be determined by its historical performance in the new system and its expected performance relative to other ads displayed at the same time. Ads of higher quality will generally receive better placement on the results page.