Domain name owners may see change in revenue this week.
Yahoo’s new click pricing algorithms kicked in mid-week in the United States, which will likely result in a small decrease in revenue for many domain name owners. Yahoo announced the change last month.
The new pricing will adjust pay-per-click prices based on the source’s quality of traffic. Industry sources tell Domain Name Wire that this change will affect long tail domain names across all keywords, whereas Yahoo’s previous traffic discounting mechanism only affected certain verticals and higher-traffic sources. Sources tell Domain Name Wire they expect revenue to decrease anywhere from 2%-12%, although smaller portfolios could see a greater change. Some domains may actually see a revenue boost if they deliver high quality traffic.
Yahoo has also released a new new Ad Delivery Report that will show the source of traffic. Combined with analytics tools, this report will show advertisers which traffic is converting for them and allow them to block domains that deliver low-performing traffic. This is similar to a tool already offered by rival Google.