Posted by: Leslie Norgren, Project Manager

Yahoo’s Vice President and General Manager of search marketing, David Pann, recently discussed shifts that the company is making to lower costs for paid search campaigns.  Some companies may be seeing PPC clicks discounted as much as 15% depending on the industry.  Pann said that Yahoo has been evaluating cost-per-acquisition numbers for advertisers and that they are now working to change the marketplace so that CPCs are priced “accordingly with the value they deliver to the advertisers.”

Although Yahoo is making swift innovations in search marketing, it may be too soon to determine the importance of their changing pricing structure for paid search.  StatCounter reports that Yahoo’s market share continued to decline in October falling to 8.91%, down from 9.4% in September and 10.5% in August.  With falling market share shifting paid search campaign budgets to Yahoo, to save a few pennies on the dollar may not currently be a wise marketing decision.  Only time will show if Yahoo’s PPC advancements will make a lasting impression on the industry as well as impact the pricing structure for Bing paid search campaigns.