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Like Google, Yahoo has an ad network that provides you the chance to have your ads placed on different Web sites and blogs. This can be very useful, especially if you want to use search as a way to reach new potential customers.
The Yahoo Ad network works according to searches, as well as by allowing you to have your ads placed on sites and in networks that Yahoo is affiliated with. These ads include display ads, which are those with pictures and video, as well as text ads, which are words with links. Yahoo has a pay per click payment scheme in place, in which you bid on how much you will pay per click, each time someone clicks through to your Web site. Those with higher bids usually get preferential treatment on the ad network. However, with Yahoo, you can see what the competition is bidding, and work to outbid it.
Bidding on pay per click with Yahoo Ads
While Google AdWords is likely to give you a higher conversion rate, and reach more people, there are some differences in the way the bidding works that can make Yahoo a good choice. The minimum bid for Yahoo is $0.10 and the maximum is $999.99, while Google's minimum and maximum bids are $0.05 and $100.00, respectively.
First of all, Yahoo lets you see what the competition is doing. You can also set up to bid a higher amount per click, and then have it automatically adjust. For example, if you bid $2.00 per click, and your closest competition bids $1.50, you automatically pay $1.51 per click, based on your competition's price, and the fact you are willing to pay more. Google, though, does not tell you how much your competition is bidding, and how much you will pay per click. With Yahoo, you always know where you stand, and how much you will pay per click.
Another issue is the fact that Google AdWords might drop keyphrases it thinks will have a low conversion rate. This means that your desired keyphrase may never even make it out of the sandbox - even if it is relevant. With Yahoo, your keyphrase has to perform low for a long period of time before it is dropped. Most Yahoo keyphrases do not get dropped. Interestingly, though, with Google, if your keyphrase does well, you might get preference over someone who bids higher.
Using Yahoo Ads when you start a Web site
Yahoo Ads can be quite useful when you start a Web site. Even though the reach isn't as wide as Google, there is still potential there, and you might find that the results you get are more relevant. Additionally, there is less competition on Yahoo Ads. But doing Yahoo Ads is no reason to shun Google AdWords. You can do both. This can actually be quite helpful if you want to cast a wide net in an effort to raise awareness for your Web site.
One thing you can do is look for a Web host that can offer you free Yahoo Ads credits. These are credits that can be used to get free advertising on the Yahoo Ads network. This way, you get a little free exposure. Many Web hosts are willing to offer some sort of ad incentive when you sign up for an ecommerce package. This can be helpful, saving you money as you start up your Web site, and providing you with potential customers. Before you sign up with a Web host, make sure you can get Yahoo Ad credits.Related article: Get Free Google Adwords Credit From Your Web Host