Matt Greitzer and Chris Boggs of Avenue A/Razorfish have compiled a report based on the experiences of 33 Avenue A | Razorfish since the release of Panama, Yahoo's new search ad system. As you know, when Yahoo released the new algorithm, it changed the core foundation of how search ads were positioned within the Yahoo sponsored results area. So how did it impact Avenue A clients?
Search Impressions – Up an average of 5%
Cost Per Click – Down an average of 6%
Click Rate – Up an average of 10%
Conversion Rates – Down an average of 5%
Overall CPA – Up an average of 6%
I find these numbers very interesting, and keep in mind these are averages. In some individual cases, Chris explains that some Yahoo advertisers have seen conversion rates increase by "25% or more."
On a related note; Stepforth has a nice related article from their experiences, Yahoo Panama - Pros and Cons.
Postscript: Rimm Kaufman shares some more hard data from their clients showing that Yahoo's recent algorithm update has helped Yahoo gain some ground on Google in terms of where client spend is going.
