Re: GoTo Policy Change

From: Kyle Yamnitz <Kyle_at_EdScope.com>
Date: Tue 03 Apr 2001 09:00:37 -0600

ROBERT J. WOODHEAD <trebor_at_animeigo.com> WROTE:

>Unfortunately, GoTo failed to realize that for many high-
>traffic keywords, where the top bids are all over 5
>cents already, there is an economic nitch for bids of
>1 or 2 cents (even if they are way down the list).
>These tend to be very generic keywords, so their
>conversion value is low for people with specific
>products. It's viable to pay a cent or two, but not
>5 cents.

>The optimal way for GoTo to implement this change would
>be to say "the top N bids must be 5 cents or more."
>This makes their partners happy, bumps the cost of the
>noncompetitive keyword bids (with only a few 1 and 2
>cent bids), but still gets them incremental income on
>the high-traffic keyword searches done directly on them.

>For example, my #1 dollar volume keyword on Goto is "
>yahoo." I pay a cent or two a click, I'm waaay down on
>the list, and yet I still pay $20 a month for that 1
>keyword. Those clicks are low conversion (because quite
>frankly the url they lead to is a public service
>tutorial and so only indirectly convert), but they are
>worth the 1 or 2 cents.

Just wanted to say good points :) Thanks for sharing.
BTW, have you noticed that GoTo has decreased the amount
they are paying out on searches from their search box?
They now pay 2 cents instead of 3 cents when searches
are done from other sites. I find that kind of ironic
since they just raised their minimum bid to 5 cents!

Take care,
        --Kyle Yamnitz
          EdScope, L.L.C.
          Expanding the Scope of Education:
                http://www.EdScope.com



Received on Tue Apr 03 2001 - 10:00:37 CDT