In the coming months Yahoo will continue re-vamping their entire search marketing system and changing the way PPC bidding is accomplished. They are changing their current structure of a bid landscape to an advertising performance model much like Google Adwords.

What does this mean to you? The new system will allow you to focus on your strategy and business objectives rather than tactical details. It will also give you greater campaign flexibility, end-user targeting, and objectives based optimization. Under the current Yahoo advertising structure, you have one title and description per keyword. The new dynamic structure will allow you to assign multiple keywords and multiple and multiple ads to a single ad group thereby creating a many-to-many relationship in your ad and keyword database structure. This is advantageous to you because it allows for advertisement testing. You can track the performance of different ads within a group of keywords, and easily see what is working for you and what needs to be adjusted to deliver the greatest return on your investment. You will be able to set the system to either equally rotate among all eligible ad elements, or to optimize against the best-performing ad combination. Each ad will also be given a quality index score that indicates how your ad is performing relative to your competition.

The new Yahoo Search Marketing system will provide you with advanced forecasting services. The system will ask you for keyword, max bid, market, geographic target, and distribution tactics, and the output estimates show how many clicks you can expect, average CPC, average position, and your share of potential clicks. The interface gives you a slider chart that shows, based upon your maximum bid, the amount of estimated clicks. Furthermore, the marketing analytics will be way more advanced, and accurate.

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