The new search algorithm has been released for about a month now. I have seen several ‘out-of-the-gate’ measurements from agencies and measurement companies alike. Click rate is gone up, CPCs have gone up, or down, conversions have changed by X…
I think all these are very interesting as a metric of how our old ways to manage a Yahoo! account played out in the new system. But, the real impact here will be seen over the next few months. We will start to leverage Panama when everyone starts to rotate messaging and measure CTR by ad and carry this through to conversion rates. The real performance of Panama will be seen when we drive it around the town a few times.
Certainly, we will see improvements in performance. Not just because Yahoo! will calculate relevancy, but we will be able to adjust ad copy, simultaneously rotate multiple versions and compare the ultimate ROI by ad. Yahoo! will be able to measure the CTR, but we will be able to measure the conversion. As most of us look to the conversion, we would gladly give up non-productive clicks while holding our conversions steady, or increase them. So, our CTR goes down (but so does our costs), while our conversions go up. These will be an interesting next couple of months as we optimize the campaigns rather than just compare them to the old system.
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