After several months of waiting, this new backend is a welcomed change as Yahoo finally moves into the future but as with any new system, it is not without its pros and cons.

New System Pros
The new system is certainly a great improvement over the old. While adjusting to a new interface and ranking algorithm may take a little time for advertisers, the end result will present more relevant ads to the searchers, which will ultimately mean a higher quality of visitor and should provide a better bang for one’s buck.

* Previously you were stuck with only one live ad for any given phrase; now you can create multiple ads for a given ad group. With the ability to have multiple ads for each phrase opens the doors to easier testing of which ad copy is better suited for your ads and prospective clients.

* Ad approval is now ínstant for most ads and keywords. While there is still a “pending approval” process for some sets of phrases, in many cases your ad changes and keyword additions are now ínstant. No longer do advertisers have to wait a number of days for their ads to go live.

* With the old system, the level of geographic targeting was very limited. Under the new Yahoo Panama the options are much more sophisticated. For example, there is an option for blocking entire continents for your ad campaigns. Rather than selecting each continent/country you want to appear in, if you are only trying to avoid one specific region, you can easily block it from your campaign.

* The geo targeting options have also expanded to allow for more specific ad targeting. Advertisers now have the ability to target specific states and provinces � a feature previously unavailable. Canadian advertisers were forced to advertise to the US even though they wanted ads only to appear for the Canadian market. This update now provides the option to target Canada only � a big plus for any advertisers who are only able to sell in the Canadian marketplace.

New System Cons
There are a few negative aspects that have been widely noted in many forums and by Yahoo advertisers. As with any new design and back end, it is expected that there will be some wrinkles. Most of the problems are relatively minor, and for advertisers on top of their campaigns, these should not present any major issues.

* One of the downsides most discussed is the transfer of account stats from the old system to the new. Once your account has been transferred, the new system will not log any of the old system historical data. While this information is still accessible by logging into the old interface (which is made read only), it would certainly make more sense if stats were available under the new account login.

* Another issue is campaign tracking. After the switch has been made, as long as you do not change any tracking settings everything should continue to work as normal; once you adjust the analytics or tracking options, you will need to replace your tracking code with a new piece of code provided by Yahoo. There have been reports where after the account is upgraded, the conversion stats no longer appear and the code needs to be immediately replaced. While not everyone seems to be having this problem, it is certainly a bug worth noting. If you have not yet upgraded, or upgraded but not checked your tracking codes, it would be best to tackle this issue right away to ensure everything will work correctly.

* There have been some reports that after the account transition some ad titles, descriptions, and even keywords, have been disrupted. Upon upgrading your account be sure to chëck all your ad copy and phrases to ensure that they are still correct or you could end up spending monëy on incorrect phrases, or damaged ad copy.

The system is certainly not without its flaws, but generally the interface is much cleaner and certainly more functional. While the ability to edit many more aspects of one’s account are now in place, it can be a little daunting to find the right place to make the change. Some items such as campaign and ad group settings are more difficult to find than they need to be, and require more steps than is really necessary. As an example, below I compare the steps required for the simple task of renaming a campaign for Yahoo versus Google:

Yahoo:
1. Log into your account. You will be presented with your account dashboard.
2. Clíck on the name of the campaign you wish to change
3. Clíck on “Edit Campaign” in the top right.
4. Clíck “Edit” at the top right of the “Campaign General Information” box.
5. Change the account name.
6. Clíck “Save Changes”.
7. Then clíck “Dashboard” to return to where you were.

Google AdWords:
1. Log into your account. You will be presented with the “All campaigns” view.
2. Clíck the checkbox beside the campaign you wish to rename and clíck “Edit Campaign”.
3. Enter a new campaign name.
4. Clíck “Save Changes” (also brings you back to where you were).

Why is it that Yahoo takes 7 steps to do something that Google can do in only 4? Not to mention multiple campaigns edits. If for some reason you wanted to rename all your Google campaigns at once, it would still take only 3 main steps plus 1 step for each campaign name changed. For Yahoo you would need to repeat all 7 steps for each campaign. These same basic steps are also required for other edits such as campaign budgets, start and end dates, and to turn a campaign on or off.

This example is not really a big deal in the large scheme of things, but is simply an indication that while Panama is a large improvement, there is still much room for refinement. As Yahoo moves forward into 2007 I am sure we will see more advancements and changes to the main navigation.

Clíck Through Rate Increased by New Ranking Algorithm
Along with an entirely new backend system loaded with new features, Yahoo has also adjusted the way in which they rank ads. The new ranking algorithm is very reminiscent of Google AdWords, and miles away from the old bid-for-position model previously used. Under the old algorithm an advertiser could dominate the top ranking simply by having deeper pockets. Now under the new Panama algorithm to guarantëe top spot for a competitive phrase, not only may you still need deep pockets, but you also need the right phrases, relevant ad text, and a quality website � giving an opportuníty for top rankings to those with smaller budgets.

According to comScore there has been a significant íncrease in the overall clíck through rate of Yahoo paid ads since the introduction of the new ranking algorithm. Compared to the week ending February 4, the last day of the old system, the week ending February 11 saw a 5% íncrease in clicks. By February 18th the total íncrease in clicks was reportedly at the 9% mark; a sign that the new system is of significant value to advertisers, and of course Yahoo. Now these figures may have been skewed slightly with both Valentines Day and Presidents Day falling into that range, however, “Bank of America analyst Brian Pitz said in a research note that he expects clíck through rates to grow about 15 percent to 25 percent starting in the second half of the year.”

What has been specifically responsibly for the íncrease in traffíc? While it may be too early to know for sure, the most likely reasoning is ad quality. Under the old ranking schematic it didn’t matter what your ad looked like or where you directed traffíc, if you had the dollars, you had the rank. Now that there are other factors at work, the most relevant, high quality ads, take the rank, and searchers are obviously noticing the increased relevance and clicking through.

Scott’s Personal Take on the New System
Generally I have to say I like the new system. It makes account management easier than using the archaic system we had all grown used to. The new system is much more streamlined and clean cut compared to the old. That said, when compared to Google AdWords, it still falls short. It’s a great first try, and within the next year or so I expect to see some more adjustments to make navigation and functionality improved. For a system with so much hype and such a long time coming, it seems less desirable than expected. Editing ad copy and URL’s is still much more cumbersome than its competitor Google, requiring more steps. The account transition could have been made smoother and items such as historic stats should have been made more easily accessible and transferred over to the new account.

Since its early days the Google AdWords system has evolved a great deal, and the same can be expected from Yahoo. Now that they have implemented a more scalable and comprehensive system, it will certainly improve as advertiser feedback is received. One irrelevant feature, if you can call it that, is that I am very grateful for the removal of the “security code” requirement when signing into the account. While I can appreciate the reasons for having it there in the first place, these security codes that were popping up everywhere really did drive me crazy, and it is nice to see this condition being removed. What does it mean to an advertisers account? Well, really nothing, but it does put a small smile on my face.

While it is not without its shortcomings, this new system is a large improvement and I for one welcome it with open arms.

Now the owner of this site was complaining loudly in a webmaster forum that his pay-per-clíck campaign was having no luck converting salës from overseas visitors, particularly in the UK and Australia. He had spent a long time developing and tweaking a landing page for the campaign and he couldn’t work out why hardly anyone outside the U.S. was buying. I took a look at his landing page and could see the problems straight away:

1) He used the American English spelling “jewelry” throughout the page without considering that persons who use British English spell it “jewellery”.

2) He provided a toll-free telephone number for persons in the U.S. to call, but did not provide any contact telephone number for persons located outside the U.S.

3) He used the word “national” throughout the page, immediately isolating anyone outside the U.S.

4) He promoted “frëe shipping throughout the U.S.” but did not specify shipping costs for persons outside the U.S.

The owner of this site had not even considered that persons outside the U.S. might search for keywords in anything other than American English. It didn’t even occur to him that there may be an alternative spelling of his main keyword and he didn’t think about the logistics for purchasers outside his country. No wonder the page wasn’t converting outside the U.S.! He had made the classic mistake of isolating a large chunk of his audience by sending everyone to a one-size-fits-some page.

What he should have done was to create a separate landing page using British English spelling and shipping/contact information applicable to persons overseas. He could then have set up a unique PPC campaign targeting only UK/Australian searchers with regional keywords and ads leading to the British English landing page.

I see similar problems occur quite often in the online travel industry where you not only have to deal with regional spelling options, but also regional jargon. Think about the word “accommodation”. Apart from the fact the word is commonly misspelled, it is used most often in the UK, Australia and New Zealand to describe places to stay while traveling. In the U.S., the words “accommodations” and “lodging” are more commonly used. Same goes for “holiday” and “vacation”, with the latter being more common in the U.S. The word “traveling” itself is spelled “travelling” in British English! So you can imagine the minefield of problems webmasters must face promoting their travel sites online to a worldwide audience.

I don’t mean to single out a particular country, but Americans seem to find it especially difficult to step outside their regional mindset. I am always receiving emails from the U.S. with helpful suggestions for fixing my “spelling mistakes”.

The funniest email exchange I ever had in relation to this was from an American web designer. She had seen our Australian-based web site (with a .com.au domain) and emailed me to tell me it was “full of errors” and that if I wanted to present a professional business to site visitors, I should correct them. So condescending! I asked her to elaborate and she pointed me to these words she felt were spelled incorrectly:

optimisation
counselling
organised
enrolment
colour
catalogue
favourite
centre

Resisting the urge to use a few offensive words I’m sure she would recognize, I tactfully explained that our site was only targeting the Australian market and that we use British English spelling in Australia. Her response? Perhaps if we wanted to be taken seriously by an international audience, we should consider using the “more proper” American English. Flabbergasted, I pointed out the fact that American English was a derivative of British English and was not widely used outside her own country. Wikipedia has more about the differences between the two here. And let’s not forget that although it is the most common language used on the web, English is used by less than 30 percent of the world’s total Internet users.

The point of this story is that you absolutely have to think outside your market if you are going to advertise on the web. As ignorant as she was, my email friend did make me realize that many of her compatriots might also think our site was full of errors. American English is more common on the web and I’ve since learned to cater to that trend. I try to remember that in all writing I do for the web now, whether it’s in my daily blog, the syndicated articles I write regularly or web page content.

Whenever you design or write for a web site that has an international audience, make sure you address each market. It pays to undertake detailed keyword research into your markets you are targeting so you can capture the correct regional jargon and spelling that people are searching for. Remember it’s not enough to think global, you’ve got to act global too.