YPN publisher getting hit on their revenue

YPN have received a introduce email for the new Quality-Based Pricing. Sounds like a good news for the YPN publishers, at least until they open their email and read what is all about.

Ok, lets get a step back, for those who don’t know what YPN is here is the explanation in poor words, Google search engine runs AdSense as revenue making ads for your site, Yahoo search engine instead has YPN (Yahoo Publishers Network).

How does actually work Quality-Based Pricing, and what impact is going to have on YPN publishers?

From what it seems Quality-Based Pricing is nothing else than the already well known AdSense SmartPricing.
SmartPricing is when advertising companies like Google AdSense or YPN in this case send the “low paying” advertisers to be published on the sites with lower traffic and the high paying advertisers to the publishers with high traffic websites. This was a common use of AdSense for awhile now, but it was not placed in practice by YPN (until now).

Here is a copy of the content that YPN advertiser users received (some users also claimed that they received email about the same announce but with slightly different content, weird).

Quality-Based Pricing Launches

Key Features:
• We’ll evaluate the quality of traffic from our distribution partners’ sites.
• Your click charges can be discounted based on the value of that traffic.
• Discounts will automatically be applied to your account.

In an ongoing effort to raise the value of our Sponsored Search and Content Match products, we’re pleased to announce the phased rollout of a new feature that we believe will help increase the value of Yahoo! Search Marketing traffic to our advertisers. This feature, called quality-based pricing, is designed to measure the value of the traffic coming from our distribution partners’ websites and price clicks accordingly for our advertisers.

What is Changing?
Previously all traffic was treated the same—you were charged the same for traffic from all web sites within our network. With quality-based pricing, you may be charged less for certain clicks than you normally would pay, depending on the overall quality of the websites that are providing this traffic to you. As a result, your click charges can decrease.

How will Click Charges be Discounted?
“Quality” is calculated based on conversion rates and other measurements of the ability to deliver more interested and valuable customers to you from particular distribution partner sites. Discounts will be automatically applied to your account.

When will this Start?
This feature will roll out beginning today, and we plan to continue to expand it over time. This is just one of the things we’re doing, along with future projects like domain-level blocking, to help increase the quality and value of traffic that we deliver to you.

What Do I Need to Do?
There’s nothing you need to do to receive a discount—your click charges may be discounted based on the quality of traffic you receive. Keep in mind that the amount of the discounts may vary between advertisers: Some may experience a noticeable decrease in overall cost-per-click, while others may experience only a small decrease in spend.

Do I Need to Change how I Bid?
Quality-based pricing does not change how you bid on particular keywords. As we announced in February, both bid amount and ad quality now determine an ad’s rank in search results. As always, you never pay more than your max bid.

Said this, the hit that YPN publishers will get can be big, but in other order, the high traffic site owners should be earning more (even tho, on those e-mail’s it is not mentioned nothing about earning more for sites with quality traffic).

Welcome to YPN smartpricing, are you ready?

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