As if competitors were not driving the prices of CPC marketing up enough during the holiday Yahoo! sent out two messages this month informing advertisers of the following:

  • Minimum deposits to fund any account is now $250, up from $50.
  • Product submission CPC (cost per click) is going to be increased across the board +25% from November 3rd to December 31st, 2008.

And here is the pretty email they provide:

Dear Product Submit advertiser,

From November 3, 2008, until December 31, 2008, Yahoo! will be making a seasonal rate adjustment by increasing the cost per click (CPC) by 25% in all categories. This means that during this period your actual billed CPC will be 25% higher. This adjustment reflects the increased consumer buying activity during the holiday shopping season, which is typified by increased leads, better conversion to sale, and increased revenue for our merchant partners. The 25% adjustment to your billed CPC will be reflected on your Click Report and in your invoice.

How nice is that? Yahoo!, not having enough money already, and with the state of the economy and how this is impacting retailers is raising their product CPC 25% default for the holiday season.

Why not let the advertisers duke it out and bid as normal for top placement?

Unreal, just goes to show that the SEM world with Google and Yahoo are turning in to a Monopoly.

Help – Mr. New Publisher Network with more than 3% of the market share of consumer searches – please help agencies squeeze some blood from a ethernet cable for our clients!

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