Mininum bids are no longer set at £0.05

This pricing change is intended to align your minimum bids with the value and quality of your keywords. It is also designed to help improve the overall search user experience by rewarding advertisers for better quality with lower entry points into keyword markets.

The amount set as your minimum bid on a keyword in Sponsored Search can vary depending on multiple factors, such as:

• The relevance of your keywords (as measured by the quality of the ads associated with them).
• The number of bidders and bid amounts in the particular keyword market.

Why are you doing this?
This change is intended to more closely align the minimum bids for participation in a keyword market with the value and relevance associated with those keywords in Sponsored Search. In addition, it supports our efforts to continually improve the overall user experience, by rewarding advertisers for higher quality with lower click charges, and now, dynamic entry points into keyword markets.

How can this benefit my account?
In some cases, this change can increase the value of the targeted leads we provide to you, by potentially lowering the bid amount necessary to participate in some keyword markets. In general, the enhancements we have been introducing in the past year or so should collectively help you reduce your cost-per-click charges when the quality of your ads is higher. For more information on these programmes, please visit our Traffic Quality Centre at http://searchmarketing.yahoo.com/en_GB/trafficquality/index.php.

Does this apply to all keywords?
No, not necessarily. With this pricing change, some Sponsored Search advertisers may begin to notice that a portion of their keywords have minimum bids of more or less than five pence. Because keyword markets are always in flux, we recommend that you monitor your account regularly and pay attention to any alerts you receive regarding minimum bids. Please note that many Sponsored Search advertisers will see their minimum bids for some keywords remain at £0.05 (or some other minimum bid amount).