Yandex.Direct Announces New Calculation for Ad Rates

Today on the Yandex advertising blog the company announced a new approach to calculations for ad rates. Effective today, Yandex.Direct will no longer calculate ad prices for entry positions, but for the additional predicted traffic volume a bid will get. This change is intended to help provide advertisers with a more transparent auction process.

The update is associated with Yandex’s new approach to SERP ad layouts that provide a wider range of different formats for ads served in the search results.  According to the blog post, during the coming year Yandex.Direct plans to test and introduce many new layouts and formats with elements that may include chats, site links and descriptions, callouts, vCards, high-quality images, and video backgrounds. The layout and format of the ads will ultimately impact the amount of traffic each ad attracts.

The new pricing calculation is based on the predicted traffic volume an ad will get.  As the blog puts it, increasing conversion rates is not just in dependent o how high an ad appears in the search results as an ad may appear in a more noticeable format or in a block with fewer competitors’ ads.

Yandex.Direct will continue to use the VCG auction and take ad quality (based on matching queries, ad text, and landing page content) and CTR into consideration when calculating price.