Yahoo expands Overture relationship

[robertclough]

Source: boston.com

http://digitalmass.boston.com/news/2003/02/04/yahoo.html

Snippet:
Rashtchy said Yahoo was using Overture, in a test program, to provide paid results in colored boxes off-set on the right side of the search page, much in the same fashion as other search engines like Google and Lycos have done.

[ihelpyou]

yes. It's all about money. Just what we need, more "paid" advertisements from Overture in the SERPS.

[Lingerboy]

I have an intersting experience to relate concerning the current trend toward "expanded" paid listings. I am a heavy CPC user, and I typically bid for the #1 spot for all of my important keywords. As more paid listings have been added to Yahoo, AskJeeves, AOL, etc (going from 3 to 4 paid results at the top), I have seen my click-thru rates drop. What does this suggest? To me, it suggests that the newly added listings in the 3rd position are more relevant than what was there previously (the unpaid listing). Overall, I take this to indicate that paid listings, in this case, are more relevant than unpaid listings.

I know you guys will hammer me on this, but I really feel that those who are willing to pay for a listing are GENERALLY offering a link to something very relevant. They have to, or they will lose money.

[markymark]

What does this suggest? To me, it suggests that the newly added listings in the 3rd position are more relevant than what was there previously (the unpaid listing). Overall, I take this to indicate that paid listings, in this case, are more relevant than unpaid listings.

I'm not going to debate 'relevance' with you, but would have to say that your basic conclusion is flawed. The fact that your click through ratio has dropped when another listing is added is simply because there is another listing on the page. It wouldn't matter if this is paid, unpaid or sent from heaven in a golden chariot. If you give people more choice, then there is more to choose from. It is inevitable that people will click on a new listing, otherwise there would be no value - commercial or otherwise - in showing it.