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Yahoo has just rolled out quality-based pricing for Yahoo Search Marketing, effectively discounting certain CPCs on the Yahoo Publisher Network (similar to Google’s smart pricing).

Here’s the announcement…

What is quality-based pricing? Essentially, it assesses the quality of a publisher’s traffic based upon the publisher’s ability to deliver more interested, high-value potential customers to Yahoo!’s advertisers. A few of the factors considered by quality-based pricing include publisher conversion rates, traffic source and implementation type. Depending on the quality of a given publisher’s traffic, the cost of an advertiser’s click can be automatically discounted by a certain percentage.

Quality-based pricing will help ensure that traffic from Yahoo!’s network is priced in a manner that is consistent with the quality it delivers to advertisers.  At the same time, providing higher ROI and discounted bid should allow advertisers the flexibility to experiment with their savings and re-invest in their search marketing campaigns on Yahoo!. 

Yahoo is making the implement in phases, over the coming months.

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