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We recently launched a very successful UK based site into the US market. The Yahoo PPC US model is very different to to UK one - but fortunately, not difficult to understand. But something has happened with one of our keywords (the one which generates the most searches) and I'd be interested to know if anyone can shed some light on what is going on. We originally bid high on this keyword and were occupying the No 1 position for quite some time. The CPA was too high so we reduced the bid and dropped, as expected, to position 4 in the listings. For some reason the
conversion rate (percentage of clicks to sign-ups) has dropped quite dramatically since we reduced the bid. Is it usual for the quality of traffic to drop when bid prices are reduced?
All feedback greatly appreciated.
Is it usual for the quality of traffic to drop when bid prices are reduced?
In my experience, no. There's a common belief that click quality should increase in lower positions due to the fact if a user has made it down to the lower ads - they're more qualified as a result of their research via the higher ads... Personally, I haven't seen hard evidence that fully supports this theory.
A much greater factor, IMHO, is that typically the top x number of ads (let's say three - but it depends) get syndicated to partner sites which, on Yahoo, tend to be of lesser quality. Therefore, the lower ads are sheltered a bit by the primary domains, so they should convert better as a result.
That said, who knows - maybe your ad performed well on certain syndicated partner sites that you're now missing?
