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When bidding on keywords in Yahoo, it is important to understand Yahoo's goal is to satisfy advertisers and searchers. As a result, Yahoo considers relevance very important. There should be a strong connection between the keywords or keyword phrases bid on and the theme of the website and landing page that the advertisement directs searchers to.

Highly relevant ads will convert to sales better and satisfy searcher's needs.

Brainstorm and create a list of keywords that you feel are most relevant (see good keywords for more keyword tips).

Combine the selected keywords into relevant phrases to expand your keyword lists. Each combination should still relate to the product or service that you are selling.

Create an Ad For Yahoo
Title: 40 Characters in Length (including spaces)
Description: 190 Characters in Length (including spaces)
URL: 255 Characters in Length (must work)

Bid on Keywords
Be sure to track the effectiveness of keywords and determine which keywords or phrases result in sales. By tracking ad expenses and sales you can determine how much you can afford to pay for specific keywords. Keep in mind you want to maximize your return on investment. Lots of clicks does not necessarily mean lots of sales.

After an ad is setup, Yahoo will review the ad before making it "live". Anticipate a 24-48 hour delay in order for the listing to be approved.

Ad Restrictions
1. The advertisement cannot mislead the searcher.
Example: Will get rid of all wrinkles instantly.

2. The advertiser should avoid using superlatives or hype in the advertisements
Example: Fabulous and amazing wrinkle cream.

3. The advertisement should be an accurate reflection of the products or services
Example: Skin smoothing cream reduces the appearance of wrinkles.

4. The advertisement should be geographically relevant. A local pizza shop should not advertising targeting a foreign market.

5. Trademark usage should be consistent with any agreements with the trademark holder.

6. Advertisements should contain proper grammar and punctuation.

7. The advertisement should be properly formatted
Example: ALL THINGS ARE All items

8. The advertisements should not contain profanity or vulgar language.

9. The advertisement should avoid repetition
Example: Cheap, cheap, cheap

10. The advertisement should not contain text like "click here".

11. The advertisement should not contain contact information.
Example: Call 800.THE.TEST

12. The advertisers and sponsors on the landing page must be clearly marked and secondary to the content on the page.

13. The landing page must contain content not just be a collection of links.

14. Landing pages must not use popups, pop unders, and the browser back button must work.

15. you must own and represent the website that you are promoting.

16. You can only list one website under each keyword.


Improve Click Through
Include the keyword or keyword phrase in the advertisement title. Yahoo reports a 50% higher click through when the keyword is used. The landing page should be relevant and contain the searched keyword and keyword phrase

According to Yahoo advertisers are 50% more likely to click on a factual listing than sales hype.

To Content Match or Not
Participating in Content Match will mean increased exposure for your ads. The ads could appear on high-quality content sites like CNN.

or they could appear on less known content sites,

Be warned Yahoo does not actively screen the sites that participate in their content network, so if you participate in Yahoo's Content Match your listings will appear in more locations.

Some Yahoo Content Partners include:

MSN.com
Wall Street Journal.com
ESPN
CNN.com

Yahoo Search Marketing Resource Center
Includes information, tutorials, listing guidelines, articles, case studies, newsletters, special offers and Yahoo FAQs.
http://help.yahoo.com/l/us/yahoo/ysm/sps/index.html

Related Articles:
What is PPC?
How to Setup Google Adwords
Pay Per Click Math