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18 Apr This post is from from my other blog here Direct from the YAHOO! Search Marketing BLOG:Minimum Bids No Longer Fixed at $.10How to manage your new Sponsored Search minimum bidsStarting today, minimum bids for some Sponsored Search keywords will no longer be fixed at $.10. Throughout the next week, you may start noticing new minimum bids on some of your keywords. Your new minimum bids can be lower or higher than $.10. Content Match minimum bids currently will remain at $.10. We’ll notify you in the account interface when the status of any of your keywords is affected.How Your Bids WorkThe new minimum bids are a little bit like auction house reserve prices, and can be based on multiple factors, such as your keyword quality and the keyword’s value—or how much we think that keyword is worth. Here’s a look at the two main factors:Quality—High quality generally means that your ads are being clicked more often, relative to your competitors. We try to reward quality with higher rankings and lower costs, and now, potentially, with lower minimum bids.Value—We look at a number of things to determine what a keyword is worth: for example, how many advertisers are bidding on your keyword, and what they’re willing to pay for it.A keyword term becomes “active”— or eligible for display—when your bid is equal to or greater than your minimum bid. Keywords become inactive when your bid falls below your minimum. You will be notified in an alert on your Account Dashboard if the minimum bid for a keyword increases above your current bid, and you’ll have a grace period of up to several days to raise your bid to keep your keyword active.I am curious to see how these changes impact my Yahoo! account. My CpC's are generally 20% higher than what I get in Google.
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