I have been using each system since day 1. I have found that in terms of ROI that Yahoo is about 30% more expensive. I figure this is because I can create effective ads with Adwords and be rewarded with higher ranking.
Others advertisers I have spoken to have had similar experiences. It seems as if Google is more efficient for advertisers. But, the real question is, is Yahoo more profitable per click because of the model they use?
Is there any sense that Yahoo or Google change to the other's pricing model?
Maximizing effective CPM is in everybody's best interest. It maximizes revenue for the engine and rewards advertisers that more effectively match the interest of searchers. Yahoo's current model does neither.
