Search engines offer tools to help advertisers gauge the costs of terms and the relative value of a bid. Yahoo’s forecasting tool gives advertisers an idea of what average position (the goal being No. 1- the top of the search results page) the ad will get and how many impressions and clicks it will receive. It also estimates the monthly investment for the bidder.
The tool now gives advertisers an option to target their bids by city or ZIP code. (Previously, the most targeted a location could be was by Designated Market Area often including several cities.) The forecasting tool begins with zeroing in on a locale. The feature is designed to help local, small and service-oriented business target their campaigns. When a customer searches for, say, a roofer in the 60601 ZIP code, the bidder’s ad can pop up on Yahoo. Advertisers can choose from about 3,500 cities and towns across the U.S. and Canada.
On Yahoo, the ultimate position of an ad is determined by the bid and by the relevance of the ad. Theoretically, better copy will aid relevance. The more customers click on the ad, the higher the ad will appear. And, a higher bid may improve the ad’s position. However, an ad cannot simply be bid to the top of a search. An advertiser may bid $5 but end up paying only 50 cents. Advertisers rarely pay the full bid amount.
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