Yahoo Charging More & Giving Less


A couple days ago, Tamar reported that Yahoo Search Marketing raised the minimum credit card amount to $250 for the Yahoo Product Submit program. Yahoo then sent us a statement, calling this change "in line with the industry's competitive norm." Now, after being offline for two days, I come back to several threads complaining about Yahoo charging more but offering less services.

Besides for the spike in the minimum charges for Product Submit customers, their fees are going up as well. A WebmasterWorld thread and Search Engine Watch Forums thread has an email from Yahoo showing that Yahoo will spike up the cost per click (CPC) by 25% in all categories in the Product Submit category. Let me quote you the email:

From November 3, 2008, until December 31, 2008, Yahoo! will be making a seasonal rate adjustment by increasing the cost per click (CPC) by 25% in all categories. This means that during this period your actual billed CPC will be 25% higher. This adjustment reflects the increased consumer buying activity during the holiday shopping season, which is typified by increased leads, better conversion to sale, and increased revenue for our merchant partners. The 25% adjustment to your billed CPC will be reflected on your Click Report and in your invoice.

No wonder Yahoo increased the minimum credit card charges to $250, it will be required with a 25% CPC increase.

To make things worse, on the Yahoo Search Marketing side, I saw a WebmasterWorld thread reporting an email being sent to Yahoo advertisers. The email says that for some advertisers, telephone support will be discontinued and they will step up the email support. Here is part of that email:

We wanted to let you know of some important news regarding your servicing options:

* Phone service - Starting September 29th, telephone support will no longer be available for some of our advertisers.

* 24-hour email support - Because we know some questions require personal help, our Customer Solutions team is always accessible, now through extended hours. Use the following steps:

Forum discussion at WebmasterWorld and Search Engine Watch Forums and the second WebmasterWorld.

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Fred Parker

10/03/2008 08:43 am

It is difficult to understand why a failing company like Yahoo insists on alienating it's customers. They spin the most atrocious trash with an agenda which translates as lets gouge these people while we are still alive!

Dale Leanhardt

10/03/2008 02:25 pm

Why anyone is wasting their money or time on Yahoo Shopping is difficult to understand. Yahoo shopping like Amazon and other paid comparative shopping engines all attract mostly high price vendors. A quick comparison between Google Shopping (which is FREE for the vendor to Post) and Yahoo Shopping will convince most people that "If a vendor has to pay more for marketing their product, the consumer will pay more for buying the product". Therefore, I must agree with your article "Paying more for less". More and more people are "getting it" and moving from the paid comparative shopping engines to Google Shopping where all vendors are allowed to compete on a level playing field.


10/03/2008 03:48 pm

This is silly. Well, i am getting 3K clicks from AdWords and 120 clicks from Overture weekly. Even if they are going to increase the CPC my weekly cost won't be higher than $50:)

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