In the previous blog post we mentioned that more research was needed on Yahoo! Search Marketing to know whether YSM performs as well as Google AdWords in terms of PPC advertising. Well, the data is in. We've been doing some rigorous testing of the Yahoo! Sponsored Search. Here's what we found.
Basically what we've concluded is that YSM performs as well or better than Google AdWords in terms of conversion rates. This being the case, ROAS (Return on Ad Spend) in YSM is actually higher due to the lower overall cost of advertising with them. The volume of clicks and conversions is lower, to be expected. This is surely due in large part to the much smaller market share that Yahoo!/Bing possesses when compared with Google (25-30% as compared to 65 - 70%, respectively).
Therefore, if you're planning on doing a PPC campaign for a client, our conclusion is that you shouldn't neglect Yahoo! Sponsored Search. Given the same ad copy, landing pages, and product descriptions, one can reasonably expect YSM to perform as well as AdWords.
One area where Yahoo! excels above AdWords is in their customer service. At any time while running a YSM PPC campaign, you can contact Customer Support and get a live representative to assist you. Where Yahoo! may lack in actual market share, they try to make up for in superior customer service. As we all know, Google's customer service is virtually non-existent. It amazes us, in fact, that the Titan of Cyberspace has grown as large as it has with such poor customer service.
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CORRECTION: We found that our testing here was flawed. More thorough experimentation has revealed that in all but the rarest of cases, Google will outperform Yahoo in terms of ROI, conversions, CPA and ROAS. Therefore, our recommendation to clients now is to focus on Google Adwords to economize and maximize ad spend.
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