YPN Quality-Based Pricing: Yahoo's Smart Pricing?

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Yahoo Publisher Network's publishers today receive a notice informing about YPN's new feature called "Quality-Based-Pricing." Many online publishers started asking questions if this may be Yahoo's answer to the concept of "Smart Pricing"introduced by Google Adsense a while ago to make Adsense and Adword more optimal.

In a message from YPN team it reads:

Dear...

"In an ongoing effort to strengthen our Sponsored Search and Content Match marketplaces, Yahoo! will be introducing a new traffic quality feature called "quality-based pricing". This feature is rolling out beginning today and we plan to continue to expand it over time.

"Quality-based pricing will give us the ability to price traffic commensurate with the value that advertisers receive from each traffic source. We recognize that this approach may have an impact on how you operate your business, and as a valued Yahoo! publisher we wanted to let you know about this new feature, as you may notice fluctuations in your Yahoo! Publisher Network earnings.

"Quality-based pricing reinforces our overall commitment to deliver long-term success for our distribution partners, a high-quality experience for users and high-value traffic to our advertisers. We are excited about this initiative, and plan to work closely with you as we roll out these features across our network."

In YPN's blog, Yahoo team members further elaborate on the pricing concept by saying that:

"Web publishing is a circular business. You produce a carefully crafted resource that's useful and entertaining to your users. You offer contextual ads from a trusted source-that's us-that strengthen your brand and message and, hopefully, bring you revenue from qualified clicks, which in turn can benefit the advertiser. That's the formula, and we've always thought it a fair one.

"In short, we like to think that we provide quality, for you as a publisher, for our advertisers and for the user. It's a big circle of value. The circle can get warped, however, when users click on ads that don't meet their needs, which can lead to poor conversions for advertisers."