Despite Google’s prominence in the pay per click stakes, Yahoo was actually the first search engine to introduce sponsored listings at the side of its organic search results. The biggest complaint levelled against Yahoo has been the lack of traffic in comparison with Google but, in recent months advertisers have reported a change in fortunes.

With any search marketing activity, the major consideration is always going to be the cost per conversion. In the cost per click stakes, Yahoo has the jump on Google with much lower bids for popular keywords. While AdWords advertisers will be familiar with paying anything from 10p to as much as £10 and above, Yahoo Panama account holders typically enjoy a much lower sliding scale.

Advertisers seeking to cut costs by using all three paid search platforms can use this cheaper bid trend to stretch out their budget performance. Keywords that have become too expensive on Google can usually be purchased for much less on Yahoo, saving money for the budget conscious. If moving the budget for one keyword completely over to Yahoo is too drastic for stalwart Google advertisers, a lower position and lower cost per click on AdWords will still free up some spend for a complimentary presence on Yahoo, doubling search engine presence for no more than is currently being spent.

If Yahoo clicks are available for less, it’s also worth mentioning that there is a lower quantity of search users to serve. Yahoo has a market share of around 20%, significantly less than the figures claimed by Google. For advertisers, this is a potential concern as traffic flows are lower than those they are used to seeing on the larger search engine. Fortunately, Yahoo does boast strong conversion rates as its users are seemingly well disposed to purchasing products and services online.

In terms of advertiser features, Yahoo recently became the first search engine to introduce a transparent click fraud reporting feature. Available directly from the advertiser interface, the click fraud report shows which clicks have been filtered out as being fraudulent and the exact amount of money saved. A first in search engine terms, this makes the Yahoo system the most transparent of any paid search interface.

For advertisers struggling to come to grips with the complex AdWords interface, Yahoo’s advertiser platform is simple. This simplicity is borne of fewer keyword matching and targeting options which some will see as an advantage and others a disadvantage. On the plus side, fewer options means it’s quicker and easer to set up the initial account structure and put adverts live.

Coming Next: MSN Pay Per Click