Yahoo has announced its new pay-per-click product: Yahoo Search Marketing (SM). This product was formerly known as Overture, but you may also recognize it as Goto.com, the name it went under prior to 2001. In our experience, advertising with Google AdWords has resulted in higher conversion rates than with Yahoo Search Marketing (SM). However, both programs have advantages and disadvantages. How does Yahoo SM compare with Google's AdWords? Let's start by looking at how they differ (all amounts are in USD).
Low CT rate dropping
Showing ads by country and language
I have bid on some keyphrases from February 1st to April 30th, and held them in similar positions during that time. These numbers are for search related impressions only. These campaigns were not involved in content advertising.
12.5% CT rate
$0.10 cost per click
3.8% CT rate
$0.13 cost per click
"Ansel Adams photo(s)"
0.8% CT rate
$0.05 cost per click
1.0% CT rate
$0.06 cost per click
Our client February Point counted emails + contact forms as conversions. Here is a comparison from February 1st to April 30th.
"Real estate Bahamas"
19 879 impressions
5.2% CT rate
$0.34 cost per click
0.30% conversion rate
35 348 impressions
4.4% CT rate
$0.45 cost per click
0.84% conversion rate
Clearly then, Google AdWords is a better choice if you are interested in clicks, impressions, and conversions. If you want the lower cost per click for the same position, it would seem that Yahoo is the better choice (though conversions are lower).
FindWhat is possibly the third biggest pay-per-click (PPC) search engine, although there are a few that might be its equal: Kanoodle, GoClick, 7Search, Search123.
E-spotting is very big in the UK, and competes heavily with Google and Yahoo in the PPC marketplace.
MSN is getting ready to launch its own PPC engine to compete with Google and Yahoo (MSN currently uses Yahoo SM on its site). No date yet, but watch out for it.
To sum up, you will definitely have more control over your money with Yahoo's system. It is more open and honest, and you will pay less per click than with Google's system. Google does not tell you why you are paying what you are paying, but it does have the added bonus of rewarding you with rank for a better converting ad.
Of course, Google does get more traffic and it converts better than Yahoo, and in the end, isn't that what we're all looking for? Thus, Google should be the winning choice for anyone that is looking to convert clickers into buyers. Because after all, who doesn't want to increase their sales?
Discss this article in the Small Business Ideas forum.
June 7, 2005
Shawn Campbell is an enthusiastic player in the ecommerce marketplace, and co-founded Red Carpet Web Promotion, Inc. He has been researching and developing marketing strategies to achieve more prominent listings in search engine results since 1998. Shawn is one of the earliest pioneers in the search engine optimization field.
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