New Yandex.Direct auction in April 2018

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mdsojolh634
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New Yandex.Direct auction in April 2018

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Not many people know that very soon, in April, Yandex will change the pricing algorithm in Direct. How this will affect search, advertising, and whether anything needs to be changed in current campaigns, we need to figure it out right now.



How does the auction work in Yandex.Direct
In Yandex search, we usually deal with two advertising blocks in search results - "Special Placement" and "Guarantees". The "Special Placement" block is located above the organic search results:



Special Placement Block in Yandex Search Results

And the “Guarantees” block is right below the results:



Guarantees block in Yandex search results

Currently, pricing is built in such a way: the higher the position of the list of taiyuan cell phone numbers ad within the block, the more the click on this ad costs. At the same time, the advertiser can choose in which block he wants to advertise.

For each position in the block, Yandex calculates the cost of "entry" into the position based on the current competition and the ad quality factor. The actual written-off price is determined by a special VCG auction algorithm. Without going into details, the cost of a click is determined by the bid of the previous position in the block. The advertiser decides for himself whether he is ready to pay a particular bid to be in the position he needs. But the actual price, in most cases, will be less than the declared bid.

It looks like this in the interface:



Calculated and written-off rates in the Yandex.Direct auction

Please note that the current bid is 32.55 rubles. But when you click, at the current moment, 12.10 rubles will be debited - the bid of the previous position.

What's good about this pricing option? Yandex's visual bid cues allow advertisers to understand what price they need to set in order to reach the desired position in the ad results.

What is inconvenient, according to Yandex? That displaying an ad in the first position does not guarantee that the advertiser will receive maximum traffic, as one might expect.

Yandex has been collecting and analyzing advertising results statistics for several years and has come to the conclusion that in order to get more targeted clicks, it is not necessary to rise higher in the results. An ad can be shown in a more noticeable design or in a block with fewer competitors. This means that the serial number in the advertising block is no longer a guideline for buying a certain volume of clicks.

Therefore, from April Yandex will calculate prices not for entering a position, but for the increase in clicks.
For example, you pay 10 rubles per click and get 100 clicks on your ad. New auctions will help you understand how much you need to pay to get 2 or 3 times more traffic. The principle of the VCG auction, when calculating the written-off prices, remains unchanged.

To solve brand problems, when it is important to show ads only above the search results, the entry threshold for such positions will be separately marked.

The appearance of the new bidding interface in Yandex.Direct is still under development. But, schematically, the new trades can be represented like this (figures "off the top of my head", for example):



New auction algorithm in Yandex.Direct

Image

What will change in search results?
First of all, the advertisements will change. They will be shown in new formats, and the location of the advertising blocks on the search results page will also change.

The new system, which will manage the appearance of advertising and its placement, is called "Stencil". Each individual search result option is a separate stencil. Yandex is already testing several stencils. Their number will grow over the course of the year.



New formats of Yandex advertising blocks

In each specific case, the system itself will decide on the delivery option - how the advertisement will be located and how it will look. The algorithm is based on the user's preferences and the advertising topic.

As Yandex itself writes:

The system shows the most effective, in each case, search option - the one that better than others maintains the balance between the happiness of our audience and the effectiveness for advertisers. And not only does it grow traffic, but also improves the user experience. For us, user happiness is not an abstraction at all, but dozens of search quality metrics that show how quickly and well Yandex responded to a particular request
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