In the latest news, Yahoo! launched YSM's 'quality-based pricing' over its 'sponsored search and contextual listings marketplaces' which will further help 'increase ROI and reduce search marketing costs for advertisers'. The initial announcement was made in YSM's official blog "A New Pricing Model Rolls Out Today".

• “Essentially, quality-based pricing assesses the quality of a publisher's traffic based on the publisher's ability to deliver more interested, high-value potential customers to Yahoo!'s advertisers. A few of the factors considered by quality-based pricing include publisher conversion rates, traffic source and implementation type. Depending on the quality of a given publisher's traffic, the cost of an advertiser's click can be automatically discounted by a certain percentage. Quality-based pricing will help ensure that traffic from Yahoo!'s network is priced in a manner that is consistent with the quality it delivers to advertisers. At the same time, providing higher ROI and discounted bid should allow advertisers the flexibility to experiment with their savings and re-invest in their search marketing campaigns on Yahoo!”.

'Quality Pricing' will be introduced in phases starting with only a few keyword marketplaces. However, the new service's accessibility will be expanded within a few month's time.

A word of caution: the decrease in overall cost-per-click will not be homogeneous throughout meaning, some may experience a smaller decrease while others a bugger margin. More details in their FAQs.

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