I reported more evidence of Yahoo Search Marketing testing a new PPC ad ranking algorithm to include a click through rate element. I’ll be honest, I am terribly confused if Yahoo is or is not testing a new PPC ad ranking algorithm, to include ad rank based on click-through rate and price per click. Currently Yahoo only uses price when determining an ad position, Google uses a “quality score” which includes price, click through rate and other criteria. Yahoo was rumored to be testing a new algorithm in Scandinavia, under the code name Project Panama. But Yahoo soon shot that down giving us a statement, which I felt was not too convicting, to be honest. And now we see signs of people reporting this phenomenon at our forums.
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