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In the new Panama platform, as you know the Quality index is a giant factor in ad performance and traffic. It took me years to get a handle on Google's and now Yahoo's seems even more crazy. I have hundreds of ad groups, and the best I can find is a 4/5 quality index. I have groups with 15% CTR that are 3/5's. Has anyone gotten a 5/5? Is this reserved for the big companies in Yahoo's good graces?
By relative, I understand it to mean relative to the other ads that are competing for the same keywords as your ad. Since your CTR can vary widely depending on what keywords you are bidding on, the raw CTR doesn't really mean very much. The quality score being 4 or 5 means that your ad is doing better and/or more relevant than your competitors. Presumably, they'll be getting some CTR less than 15%. Also keep in mind, your CTR depends a lot on what rank your ad ends up getting.
Here's where I found some details about it (search for "quality index" in the help system):
Personally, I'd be interested in seeing a quality score for each of my keywords (like Google recently introduced) - makes it easier for me to see which keywords are underperforming.
I have had to break out a lot of keywords just to get a more accurate measurement of performance.
I don't have any 5s personally. Wish I had a better handle on their quality scoring. I don't quite know what they are looking for... Is relative CTR the biggest component of the score?