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The Devaluation of Yahoo's PPC System
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If you are a webmaster or an Internet marketer who heavily relies on the results of pay per click systems in order to generate conversions it is important that you pay attention to the recent studies many webmasters are talking about that are directly related to this specific platform. As you may know Yahoo's PPC is a lot cheaper than Google's, in fact it can be said that Yahoo's price is less than one third than that of Google.
One of the reasons advertisers think that Yahoo's traffic is a lot cheaper than Google's is because Yahoo is trying to attract a wider audience and Internet marketing clientele, while this is partially true is not the main reason why Yahoo's PPC prize is so cheap. According to many reputable SEOs the difference between the two lies in the fact that Yahoo heavily relies on ad syndication.
According to Danny Sullivan from search engine land, over 55% of the cliques that were generated through Yahoo came from their syndication partners. Those who heavily rely on PPC know that getting clicks from syndication partners means getting lower quality traffic which in term converts at a higher ratio, this way and offer which would normally convert at 1:10 would be converting at 1:25
Analyze the numbers from marketers in four verticals (or niches) with a clearly see the number of syndicates across Google and Yahoo as well as a conversions. According to Efficient Frontiers after running several tests a 45% of the clicks sent to their campaigns came from direct searches on Yahoo and 58% of the conversions were generated there, this obviously means that the traffic quality that comes directly from their search engine is a lot higher than the traffic quality that is being sent from their syndication network.
On the other hand, Google was able to send 59% of the clicks directly from organic searches instead of the syndication networks and nearly 75% of all conversions came straight from pure search. On a related note, 99% of the traffic that MSN sends to advertisers were directly generated from pure search and nearly 100% of the conversions were generated through it as well, MSN numbers might decline as time goes by you to the fact that their PPC platform was recently launched and is not nearly as old as that of Yahoo or Google for that matter.
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