Yahoo! Change May Hurt Domain Parking Revenue
Friday, August 14th, 2009
Change in pricing algorithm may lower parking payouts for domainers.
Yahoo! (YHOO) just announced changes to its pay-per-click advertising program that will change the amount advertisers pay for clicks based on click quality. The company says it plans to “expand the adjustments” it already makes to click charges based on the quality of traffic the advertising source delivers.
Although this may seem like it has an upside — good domain traffic would be rewarded — it appears to skew in the other direction. In an email to customers, Yahoo! wrote:
These adjustments will be based on our assessment of the performance of the traffic source, and will not be affected by the quality of your ads. Based on our analysis, we expect that most advertisers will see click charges drop or remain unchanged, while a small fraction of advertisers may experience an increase in click charges.
