Back in early April we wrote about rumors on Yahoo! Search Marketing switching to a new algorithm that ranks sponsored ads based on a CTR & PPC model. That was then kind of rejected;
As we've said in the past, Yahoo is working on a new search advertising interface that will provide businesses with a more powerful, easier to use advertising experience. We plan to introduce the new interface during the second half of this year.
However, today, one user posted a thread suggesting Yahoo! Search Marketing is actually testing the new algorithm out. The forum thread is at Search Engine Watch Forums and states;
Yahoo! seems to be performing some sort of test on certain accounts - one being my personal Yahoo! account. It is my guess (based on how that I see the rankings changed) that they are testing a pricing model similar to Google and MSN in which rank is a combinatin of CTR and max bid.
Wow - but Yahoo! denied this!
Forum discussion at Search Engine Watch Forums.
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rustybrick in Yahoo! Search Marketing at May 4, 2006 3:31 PM
Comments (3)

Comments
I got the same feeling from Yahoo a couple months ago when I tried to get an Overture API. After multiple back and forth conversations they gave us a developer API, but they did not want to give us a public API. One of their tech guys told us they are changing things and hinted that it would be similar to the Google AdWords model.
Posted by Neil Patel at May 4, 2006 18:46