Marketing analytics firm reports steep drop in Yahoo click costs.

According to marketing analytics company Covario, Yahoo’s cost-per-click prices were down 29% after instituting widespread variable click pricing in September. Although it’s unclear what universe of click data Covario used to calculate this, Yahoo is happily quoting it. Covario says the typical CPA is down 11% since the change.

Although initial estimates among parking companies were that parking click revenue would decline anywhere from 2% to about 12% following the change, individual publishers are seeing wide variances as their traffic quality scores change.

A bigger drop may be in store once Yahoo implements its new “premium” channel segmentation as part of a lawsuit settlement.

But there are a couple bright spots in the news. First, if CPAs are falling as Covario suggests, advertisers might start moving back to Yahoo and push CPC rates back up. Second, Covario reports that click through rates were up 46% after making the change (a correlation that doesn’t make immediate sense to me).

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Related posts:

1. Yahoo! Pay-Per-Click Rankings to Change in February
2. Will Cost Per Action Replace Cost Per Click?
3. Yahoo May Outsource Pay-Per-Click to Google

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