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Till date ads in Yahoo were ranked depending on the bid. This means higher you bid for a keyword, higher would be your ad ranking. This will be changed very soon now. Just like Google, Yahoo will also rank ads as per the bid and also the ad quality. For Google ad quality depends a lot on the landing page. This means Google has a mechanism where they check the relevance of the ad with the advertised page.

 

I am not sure if Yahoo will be looking the quality and relevance of the advertised page as well. Looking at the email I received here is what they mean by Ad Quality:

 

Ad quality is determined by:

1.       The ad’s historical performance - its click-through rate relative to competitors and normalised for position.

2.       The ad’s expected performance - determined by various relevance factors considered by Yahoo! Search Marketing’s ranking algorithms, relative to other ads displayed at the same time.

Overall ad quality is displayed in a graphical form by the quality index.

Still don’t get it? The picture below would be helpful:

 

 

 

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