Bing-Yahoo Search Engine Merger Costing Internet Marketers More
By Anna Johnson on December 14th, 2010An article by Jason Tabeling suggests that Internet marketers advertising on the newly Bing-powered Yahoo search engine are paying more for fewer clicks.
Tabeling analyzed the results of a variety of clients who advertised on Yahoo-powered-by-Bing in October and November 2010. He found that within days of Bing beginning to power Yahoo Search (on October 24, 2010), the average cost-per-click rose significantly before settling down to their original levels.
At the same time, the average click-through rate (CTR) dropped, before slowly climbing back up, albeit not to pre-merger levels.
According to Tabeling, conversion rates for ads on the merged search engine are up but, overall, the net results for advertisers are not yet positive. As at the time Tabeling wrote his article, the percentage change in average CPC, CTR and conversion rate among his clients were as follows:
- CPC: up 14 percent
- CTR: down 34 percent
- Conversion rate: up 8 percent
Tabeling expects further variations in CPCs, CTRs and conversion rates as advertisers continue testing what works… and what doesn’t.


