Google vs Yahoo

Google AdWords and Yahoo Search Marketing cover about 70% of the available PPC ad space, when you consider that they syndicate their results to several other search providers, like AOL for example. Generally speaking, both the Google and Yahoo PPC programs have similar objectives and display their search results in almost an identical manner. Until the beginning of 2007, the way the two systems were managed and the way they functioned internally was quite different. However, Yahoo made a significant overhaul to their Yahoo Search Marketing platform and it now appears very similar to Google, at least on the surface.

It is easiest to explain the differences between the two systems by pointing out how Yahoo tried, and in many cases falls short of what Google has already perfected. I’m sure that Yahoo will ultimately work out the kinks and improve the functionality, but from where I sit, the new system is a bit of a disappointment.

Generally speaking, Yahoo’s migration to the new platform still has issues which even Yahoo themselves do not completely understand or know how to fix. This is especially true if you are migrating from the old 2-level platform to the new 3-level platform. While Yahoo tries to be helpful, the issues are so significant that I have chosen to totally recreate my own personal campaigns as well as campaigns I manage for clients.

Both Google AdWords and Yahoo Search Marketing use a quality score which is based on several factors that they will not completely divulge. This quality score is so significant that it will place an ad from one advertiser above another advertiser who is spending twice the click charge amount! Trying to figure out how the quality score actually works is like trying to hit a moving target when it comes to creating and managing campaigns. However, simply understanding and implementing basic SEO techniques can make a noticeable difference in determining your keyword quality score and how much you pay per click.

It is important to understand a growing trend in the PPC industry that lies at the heart of the major differences between Google and Yahoo PPC programs. This is an effort on the part of the search providers to force increased competition for keywords, which ultimately creates higher cost-per-click (CPC) charges and higher profits for the search providers. Yahoo calls it their “match driver”. They do this by grouping several keywords or iterations of a keyword, and forcing advertisers to compete. Generally speaking, Google gives you more options and provides better tools for managing keywords. This means a savvy campaign manager can be rewarded with a lower CPC by understanding and implementing the right tactics in Google.

If you have ever developed a really good campaign in Google AdWords and tried to replicate it in Yahoo Search Marketing, you will know what I’m talking about. You will get an unbelievable number of “Declined” keywords with the error “Duplication of results” as the reason. This is because Yahoo has taken all those unique keywords you worked so hard to find and make work in Google AdWords, and lumped them together, forcing you and all the other advertisers to compete for the same “keyword”!

The inverse is also true if you try to replicate a Yahoo Search Marketing campaign in Google AdWords. If you have not invested the time and effort to expand your Yahoo keyword list when you move it to Google, you will have missed out on a significant opportunity to save money on click charges.

These are just a few examples of why it is important to understand the differences between these two PPC search providers. There are many more that if you don’t already know, are costing you money, perhaps enough to warrant changing your campaign manager!

Here is one more interesting observation. Generally speaking, Google is used by males and business people, whereas Yahoo attracts more consumer and female users. Depending on your product or service, this could be an important factor.