A better quality advertisement on Yahoo can allow you to obtain higher rankings in their pay per click search marketing without increasing your cost per click.
Yahoo Quality Index
Much like the Google Quality Score that I wrote about recently Yahoo has their version which they call the Yahoo Quality Index. Essentially they are trying to determine if you have a relevant advertisement. They wish to present quality advertisements to visitors of their site. The better your Quality Index of your advertisement, the more likely you will achieve a high ranking position in relation to other ads and spend less money than others that have a lower Quality Index score.
How is the Quality Index Computed
To compute the Quality Index Yahoo looks at your advertisement, the keywords in the ad, the keywords you are targeting, how many clicks you receive and how you compare to others that are your competition.
What is Good and What is Bad
When reading the Google Quality Score a 1 is bad and a 10 is best. For Yahoo Quality Index they show a bar with 1 to 5 bars, 1 is bad and 5 is best.
How to Increase Your Quality Score
To increase your quality score you need to micro manage your advertisements and campaigns. Create ads that incorporate your keywords, either hard code them by typing the word in the ad or use their “insert keyword” function. [Note: When using the insert keyword be careful to check that inserting a keyword will make sense when the full ad is being read by a user]. Therefore the more relevant your keywords to your ads the more likely your score will be higher.
Also, although Google and Yahoo have not said this (at least I cannot find it) I firmly believe from experience that the correlation between the keywords, the advertisement, and the landing page the advertisement is sending the individual to, makes a difference as well. So make sure your landing page correlates to the keywords you are using and the advertisement.
Manage your Yahoo ads much like you would your Google ads, optimize keywords – ads – and landing pages for the higher score, higher rank, and cheaper overall cost when compared to your competitors.