Search Marketing Takes Madison Ave by Storm and Yahoo Defies the Logic of Media Buying


I have realized a major discrepancy in the pricing of search marketing ads. Media buyers working with more traditional publishers are use to a system in which publishers price ad space according to circulation; the higher the circulation, the higher the rate to purchase a spot. On the Web however, this structure is either ignored or directly challenged by SE publishers. Yahoo currently charges a minimum bid of 10 cents per click on any SE ad on its site while Google, with an exponentially larger circulation, charges a minimum bid of 5 cents. Why pay double for half the circulation? Are media buyers negotiating this rate with Yahoo?


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