yahoo/overture faq
- AdScientist is running AutoBid every hour, but all the bids that are colored in blue are not being updated. Why would it be this way?
- Why is the ad's position on AdScientist different to Yahoo's website results?
- What is Yahoo's Auto Bidding?
- What is the difference between the two Yahoo Bid Types: Auto Bid and Fixed Bid?
- What is Yahoo's "Max Bid"?
- Can advertisers see their competitor's Yahoo Max Bid?
- What happens if several advertisers in the marketplace submit the same bid amounts for the same search terms?
- Can advertisers bid by position?
- What role does Yahoo Bid Management Licensees play under Auto Bidding?
- Understanding Yahoo Bidding Algorithms (and Competitors Killer Mode)
AdScientist is running AutoBid every hour, but all the bids that are colored in blue are not being updated. Why would it be this way?
This is a part of tracking software of any kind that is often the most confusing part to understand. A user expects their keywords to be shown in the targeted position all the time at every moment; however, this is
not always possible since as soon as you change your bids, your competitors may have also changed their bids. Your ad position will be changing dynamically, and your position, to a large extent, depends on how often your competitors change their bids.
Since Yahoo has a frequency update rate limitation, you can only update bids 24 times per day and once within each 30 minute time span. This means that the program does not update your bids every second - it'll only update bids at least once within its 30-minute update cycle. So if you raise your bid, and your competitor raises in response, you will still have to wait at least 30 minutes before countering with another raised bid.When you check your ad position, it may not even be in the position you are bidding to. Some of your competitors may have even changed their bids after your update was completed.
For example, you set your targeted position to #1. At 8:00 am, AdScientist updates your position to #1 position for $1.16. Ten minutes later at 8:10 am, your competitor changes his bid to $1.17. Now he is in the #1 position and your position moves to #2. When you check your position at 8:15AM, you will find that your position is at #2. But this does not mean that AdScientist is not on the job, because you cannot update your bids until 8:30 am, so you will stay at position #2 or lower if there is another competitor who changes his bid during this time.Then, at 8:30 am, AdScientist update your bids and sets your position to the #1 position for a cost of $1.18. The same process repeats again.
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Why is the ad's position on AdScientist different to Yahoo's website results?
Before answering this question, you need to understand a little more about how AdScientist
works. To process a full "update bids" routine, the program will take the following
steps:
1. GetListings: this process will download your keyword listings from your account.
2. Keyword Look Up: this is an important process to get your current position and your competitor's position details.
3. Update Bids: after Keyword Look Up, the program will calculate the new price based on your target position setting, then update the new bid price to the server.
4. Keyword Look Up Again: after sending the new bid amount to the server and updating your bids, the program needs to run the Keyword Look Up function again to update the screen for your new position.
AdScientist has two modes: Scheduler mode and Manual mode. During the Scheduler mode, in order to improve the speed issue, the program will NOT update the screen after it has updated the bids in the background (because when you run the program at night or in Scheduler mode, you don't need to watch the screen every second). For this reason, the program does not perform the Keyword Look Up Again (step #4) function after updating bids. So when you look at the screen, the data on the AdScientist screen is out of date and the positions different to those shown on Yahoo.
If you want to see the fresh, current position data at that moment, all you need to do is to run the "Keyword Look Up" function manually by clicking the "Manual Bid/Keyword Look Up" button to refresh the current data and display on the screen.
If you always want to see the latest position data while in the Scheduler mode, go to "Account"profile window and choose the "Advanced" tab. Check the option to "Always perform keyword look up after update bids", so you will receive, fresh, current data every time. Keep in mind that using this feature will slow down the process of updating bids.
Auto Bidding is a powerful new way for Yahoo advertisers to manage their bids in the DirecTraffic Center.
The Auto Bidding system allows advertisers to optimize their budgets by allowing them to set the maximum they are willing to pay for a click, and then adjusting their cost per click to give them the best price available. Advertisers pay only $0.01 more than the Max Bid of the next highest competitor without exceeding their Max Bids. For example, if an advertiser sets their Max Bid to $0.50 and the next highest listing has a Max Bid of $0.45, they only pay $0.46 per click — saving $0.04 for every click.
What is the difference between the two Yahoo bid types: Auto Bid and Fixed Bid?
An Auto Bid allows an advertiser to set the maximum amount (Max Bid) they're willing to pay for each click. Our systems will then look at the Max Bids of all the other advertisers in that search term marketplace and give them the best position available. The advertiser only pays $0.01 more than the Max Bid of the next highest competitor. As other advertisers change their Max Bids, our system will adjust their cost automatically so they maintain the best position at the best price available, without exceeding their Max Bid.
A Fixed Bid is what Yahoo has traditionally offered. It allows an advertiser to set the exact amount they're willing to pay for each click. Unlike Auto Bidding, with Fixed Bidding, they pay the exact amount they input, with no elimination of bid gaps.
For example, if an advertiser sets their Max Bid to $0.50, they will pay $0.50 for each click, regardless of what the other advertisers in that marketplace bid.
A Max Bid is the highest amount an advertiser is willing to pay each time the listing receives a click.
Can advertisers see their competitor's Yahoo "Max Bid"?
Yes, advertisers will be able to see the top five bids from the "Manage Bids" page. In addition, "More Bids" in this column will show the Max Bids for all other positions.
What happens if several advertisers in the marketplace submit the same bid amounts for the same search terms?
When two or more advertisers bid the same amount, seniority is given to the first advertiser who bids that amount. Therefore, if Advertiser A submits a $0.50 Max Bid and another $0.50 Max Bid already exists from Advertiser B, Advertiser A will appear after Advertiser B.
Can advertisers bid by position?
Yes, there are several ways advertisers can bid by position.
The easiest way is to use the "Top 5 Max Bids" information, found on the "Manage Bids" page. This will show the Max Bid an advertiser needs to exceed in order to move into one of the top 5 positions. For position 1, the advertiser needs to bid at least one cent higher than the current Max Bid at position 1. To retain this position longer, we recommend that the advertiser set their Max Bid more than one cent higher than the current Max Bid for position 1. Remember, if the advertiser chooses Auto Bidding their cost will only be $0.01 higher than the Max Bid of the advertiser at position 2, regardless of how high they set their Max Bid.
For advertisers who would always like to get the best possible position for their bid, we recommend that they set their Max Bid to what they're willing to pay on the Manage Bids page and our systems will make sure the advertiser gets the best possible position for the best cost without exceeding their Max Bid.
It's important to remember that using this option does not automatically maintain an advertiser's position when other competitors adjust their bids. Because of the dynamic nature of our marketplace, we recommend that the advertiser frequently check their listing(s) and adjust their Max Bid to ensure they maintain their desired position within the search results.
You can always see which position your listing has achieved on the Manage Bids page in the "Position" column.
What role does Yahoo Bid Management Licensees play under Auto Bidding?
Yahoo sees an ongoing valuable role for third parties in working with Yahoo. For companies that wish to maintain a guaranteed position on an ongoing basis, additional bid-management services may be just as useful as they were prior to Auto Bidding. In addition, bid management services may also be helpful for companies that wish to utilize complex bidding rules.
Understanding Yahoo Bidding Algorithms (and Competitors Killer Mode)
Since Yahoo introduced the "Auto Bidding" system, bidding logic has been changed. There are two bidding types :
- AutoBid Type
- FixedBid Type
AdScientist uses different strategies for different bid types in order to maximize your bidding results and save you more money. You need to understand the difference between "Auto Bid" and "Fixed Bid" in order to understand how AdScientist really works.
1. Fixed Type:
The program will remove any bid gap and bid to your target position. For example:
$2.00
$1.70
$1.50 <--- Your current position
$1.30
$1.00
$0.70
$0.40
if your desired target position is #2, then AdScientist will bid at $1.71, and your position changes from #3 to #2.
if you want to stay at the current position #3, then AdScientist will remove the bid gap and change your bid to $1.31. You save $0.20 per click.
If you choose to bid to a best position range between 1 - 3, then the program will find the BEST VALUE position for you and bid to position #2 at $1.71, because there is a bigger bid gap($0.30) between #1 ($2.00) and #2 ($1.70) than the bid gap between #2 and #3.
(NOTE: Fixed Type has been removed by Yahoo. All keywords are bidding in the AutoBid type only.)
2. Auto Bidding Type
You need to exercise caution with the Auto Bid type. It uses a different strategy compared to Fixed bid type.
In this bid type, note that AdScientist does NOT remove bid gap. Instead, Yahoo's Auto Bidding system will remove the bid gaps for you automatically. However, you need to set your Max Bid very carefully to avoid accidentally creating gaps for you. You also need to set the Max Bid very carefully to avoid paying too much money for your keywords. Only AdScientist can do this job efficiently for you.
Competitors Killer Mode - If you are an advanced user, you can consider using "Competitor Killer Mode". In this mode, the program will attempt to bid to your target position; however, the program may NOT always bid to your desired position. Instead, it will bid to the NEAREST best value position which COSTS your competitors even more money.
Here is how it works:
If your desired position is #1, instead of bidding to the target position #1 directly, the program will first check if there is a big bid gap between #1 and #2. If the bid gap between #1 and #2 ($2.00 - $1.70) is smaller than your "Preserve Value" ($0.50) it will move you up to the #1 position, the program will bid to the #1 position, where the Max Bid = $2.50. In this case, it is not worth it to beat your competitor because the bid gap is very small.
(Note: if your competitor wants to become #1 in position, he will need to pay at least $2.51 to do so.)
If the bid gap ($0.60) between #1 and #2 is bigger your Preserve Value ($0.50), for example:
$2.00
$1.40
$1.30
$1.10
$1.00
$0.70
$0.40
in this case, the program will NOT bid to your desired position #1, instead it will bid one position down of your desired position #1 and bid at the SAME amount of your target position #1. In this way, it will cost your competitor (#1 position) to pay the Maximum amount of your MaxBid. In this example, the program will bid at $2.00 which is the same as #1 (your desired position), so that your competitor (#1 bid) will pay $2.00, and you only pay $1.41 at position #2.
(Note: If you bid to #1 position, your bid cost is $2.01, and your competitor will pay $1.41 in position #2, with Competitor Killer Mode, we believe position #2 is the best VALUE position because it costs less)
If your desired position is #2, in the above sample, the bid gap ($0.10) between #2 and #3 is smaller than your Preserve Bid Value ($0.50), and the program will bid at $2.00 (same amount as #1). In this way, you are in position #2 and your actual bid cost is $1.41.
(Note: You save money, and your competitor in position #1 will pay $2.01.)
If your desired position is #2, and the bid gap ($0.60) between #2 and #3 is larger than your Preserve Bid Value ($0.50), for example:
$2.00
$1.70
$1.10
$1.10
$1.00
$0.70
$0.40
The program will NOT bid to your desired position #2, instead, it will bid at $1.70 in position #3, in this way, it will force your competitor to pay $1.71 for position #2 and you only pay $1.11 for position #3.
(Note: you save money by bidding at position #3 and paying $1.11, but it cost your competitor to pay $1.71 at position #2).
Please note that Yahoo's auto bidding feature involves complicated logic paths. The concept of "Competitors Killer Mode" is to stay in a bidding position that costs your competitors to pay more money, forcing them to move their position down and you stay on the top. Please study these Bidding algorithms carefully and fully understand how it works before choosing "Competitor Killer Mode".
Bid to Best Value Position Range:
By choosing "Bid to Best Value Position Range" allows you to move your position between your desired position range, while saving money. Here is a sample:
$2.00
$1.70
$1.10
$1.10
$1.00
$0.70
$0.40
If you want to bid to a FIXED position #2, in the above case, you will set your Max Bid to $2.00 (your actual bid cost is $1.71). If your competitor (#3 position) changes their Max Bid to $1.99, then your actual bid cost will be $2.00. If you want to stay in this FIXED position #2, then you will always pay $2.00, but your competitor (#3 position) only pays $1.11 at position #3. You pay $0.89 more than your competitor in this situation..
If you choose to bid to "Best Value Position" range between 1 - 3, when your competitor changes their bid to $1.99, AdScientist will adjust your Max Bid to $1.99. In this case, your competitor (was on position #3) will change to #2 and by paying $1.99, you will DROP to position #3 and pay $1.11. It is a saving of $0.89 by dropping from position #2 to #3 in order to save money.
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