My Yahoo rep has confirmed that they will be reducing the minimum cpc from 10p to 5p on their ad platform here in the UK on (or around) the 19th of January. This is positive news for advertisers who have previously been put off by the minimum 10p bid. The change will be introduced on the current platform before any migration to the upcoming Panama (or Yahoo Search Marketing 2.0) product which is expected around the end of Q1 in the UK.

However, in a rather strange move, Yahoo are not set to completely change the base cpc bids from 10p. There will still be a small number of ‘keyword categories’ (expected to be in the region of 150K terms) that will remain subject to the original base 10p bid. Categories with high cpc’s such as finance are expected to be those kept to 10p.

I would think implementing a complete change of bid would be far easier than trying to run keywords with different minimum bids, so its a little strange. I don’t have access to the full list of categories, but it would seem the high cpc keywords will be those kept to a base 10p bid. Although you could argue that changing bids on these keywords would not have a huge effect on overall average bids & potential revenue to Yahoo due to the small cpc decrease and intense competition, it could also be seen as a form of revenue protection.

I am hoping for a complete removal of minimum cpc with the upcoming introduction of quality based algo. But we will have to wait and see if this ever happens.