Apr 1 2004

The New Yahoo!

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A Look at Yahoo!

Last month Yahoo rolled out its new search. Yahoo no longer reproduces Google results but are trying to create their own name (once again) in search. Many believed that Yahoo would simply replace Google’s results with those of Inktomi, which they purchased well over a year ago. However, Instead of just switching search providers with their own internal engine, Yahoo started from scratch (well, almost) to develop a unique search engine algorithm, different from Google, different from Inktomi, and different from AllTheWeb and AltaVista, both of which are also owned by Yahoo. This new search has been dubbed Yahink for being a hybrid of the Inktomi database and Yahoo’s own search algorithms.

So far the results have been pretty impressive. We have seen many sites that ranked well on Google also rank well on Yahoo. Yahoo’s algorithm is definitely not a Clone of Google’s but they are keenly aware of the relevancy factor which propelled Google to the top a few years back. Yahoo also must provide quality relevant results if it wants to be a contender in any way against Google.

Its only been a few weeks but it appears that Yahoo is in the game to stay. Every few years a new top dog emerges in the war of search engines, Yahoo already had its day, but they’ve come back to fight another round. Personally, I hope the days of a single dominant search engine are forever gone and we’ll see not just two, but three or four search engines that provide quality search results and can deliver traffic to top ranked sites in equal shares. While it is an impossibility to achieve top rankings on every major search engine, attaining top rankings in two or three engines that all deliver traffic to your site will allow businesses to keep a constant flow of quality traffic to their sites should rankings suddenly drop on one engine due to an algorithm change. You can equate search engine competition to the fuse boxes in your home. If you blow the fuse in the bathroom, you still have electricity in the kitchen and living room. Yahoo’s emergence has given us one more fuse in cyberspace.

Yahoo’s SiteMatch

Last week Yahoo rolled out its new pay for inclusion (PFI) program through Overture called SiteMatch. When Yahoo purchased Inktomi it picked up Inktomi’s PFI program. Yahoo also inherited two more PFI programs at AltaVista and AllTheWeb when it purchased Overture. SiteMatch is a semi-combination of all of these PFI programs, but with a twist.

First let me give some history of PFI. Everybody knows that the Web is not the “free” resource it once was. Everybody is trying to make a dollar via the internet and search engines are no exception. Initially the only way for search engines to make a profit was to sell advertising space, via banner ads, etc. Then along came Overture which created a pay-per-click (PPC) program that allows sites to purchase “ads” that look like the free search search engine results.

These ads are sold on a bidding system where the highest bidder obtains the higher positions on the page. A few years back the FCC sent out some guidelines to avoid regulation of these ads. Among those guidelines was that PPC ads be clearly labeled as “sponsored” or something similar, just so long as visitors don’t mistake them for “free” search listings. Most search engines now have these sponsored listings at the top or in Google’s case on the right hand side of the page. These are PPC ads.

Soon after a few search engines moved to a PFI model allowing businesses to pay the search engine to index their pages. The PFI model did not give the site any special treatment in terms of where it ranked–optimization was still key–but it did provide for a regularly scheduled re-indexing of each page which paid to be included. You no longer had to wait 30 days for the search engine to come back around naturally, they would come back and revisit our site every few days.

Yahoo has now discontinued the PFI programs at Inktomi, AllTheWeb and AltaVista (if you have pages included you’ll receive the same service until your URL(s) expire) and have rolled them all into a single PFI/PPC model called SiteMatch. With site match you pay a single yearly fee to have your URL reviewed for inclusion (much the same as the other PFI programs), but once your URL is included Yahoo does something unique: they charge for each click. Unlike standard PPC where bidding determines how much you pay per click, SiteMatch charges a flat $.15 – .30 depending on which fee structure your site fits under (this is determined by Yahoo).

To be fair, 15 cents–or even 30 cents–per click is far less than many people pay for the PPC ads, but remember, with SiteMatch you don’t get any keyword or placement control. Because ranking is determined on how well your pages are optimized for your keywords it will be much harder to budget and predict your return on investment with this new program. Another drawback is you pay for every click that comes to your site through Yahoo and its SiteMatch affiliates, even clicks from keywords which you never intended.

It is impossible to predict all the keywords your site will rank well with. If you sell real estate in Portland, OR, you may rank well for a keyword search regarding real estate in Portland, ME. There are thousands of such examples of unrelated keywords any site can potentially rank well for, and with the new SiteMatch program you’ll be paying $.15 or $.30 cents for each click. Paying for non-targeted traffic that will not produce sales can add up pretty quick!

Until we have tried SiteMatch for ourselves we will reserve judgment on whether the program is a valuable advertising resource or not. It very well may turn out to be an added plus to any full-service online marketing campaign and produce valuable ROI. Along with PPC management, Pole Position Web has added SiteMatch inclusion as an optional service to our optimization strategies. We will also be happy to hear any feedback from those of you who have signed up for this new program.

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