Yahoo wants to revolutionize online advertising

Yahoo APEX online advertising platformA new way to advertise online? That’s what Yahoo wants to do. After they reclined an offer from Microsoft which offered to buy Yahoo for 44.6 billion USD Yahoo president Sue Decker announced that they had big plans.

But let’s look at that number again: 44.6 billion US dollars and Yahoo did NOT want to sell for that amount of money. Do you know what that is all about? It’s all about Pay Per Click advertisements! That’s how Yahoo generates revenue! From PPC advertising! And they didn’t want to sell for 44.6 billion dollars. That’s a lot of money…

Anyway: Yahoo’s new advertising platform is currently under the name of APEX (advertiser-publisher exchange). According to the Decker it will make it much more easier for both buyers and sellers of online advertising. They are working together with around 500 newspaper publishers to make it easier for them to advertise on a broader, yet still targeted scale.

And Google is not the only company that aims at simplicity: Google tries to make things simpler, and so does Microsoft with their AdCenter and AOL with Platform A.

How much competition is too much?

If you want to start a PPC (Pay Per Click) campaign one of the first things to do is to check out how many advertisers are bidding on that search term. The fastest way to do that is to just search for that phrase in google.

Some keywords have almost a hundred advertisers - just type in “affiliate marketing” and see how many ads show up (per page there is an 8 ad maximum, but then the ads show up on other pages too).

Other keywords might have only two advertisers - when I typed in “pencil” there were just two results showing up.

Guess which campaign will be easier to compete in? Usually everything below 15 ads per searchphrase is an easy game, and every searchphrase that has more than 50 ads will be a tough one.

But again: this is just a rule of thumb, and some search-terms will be just too hard to monetize even if you are the only one. The key to higher profits is as always: testing, testing, testing.