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We previously announced that an improved marketing platform is on its way, full of advanced, easy-to-use features that will help you better connect with customers looking for your products and services on Yahoo! Search Marketing's distribution network. Please take a moment to read our plans for assisting you during the transition to the new Sponsored Search.

We've been thoroughly testing our systems to help ensure a quality experience once advertiser accounts are upgraded, and will shortly begin the process of notifying advertisers about their account upgrade.

You will be notified of your upgrade date two weeks in advance of your upgrade. You will also be able to access a preview of what your account will look like after the upgrade, to help you become familiar with the features and the layout of the new control panel. If you're happy with your preview, we encourage you to upgrade your account during this week. This will help ensure that your upgraded account closely resembles the preview.

Please note that there will be no change at the time of account upgrades to the way listings are ranked; they will continue to be ranked by bid as they are today. Over the coming months, we will change the way ads are ranked, taking ad quality into account, as well as bid. More detailed information will be provided regarding this change before it occurs.

Source: Yahoo! Search Marketing Newsletter

The new system will work by defining the action that you want a user to perform when they visit your site, such as signing up for your newsletter or purchasing a product. Then you’ll set the amount that you’re willing to pay when this action is completed.

The point of the procedure is that you’ll only pay when a user clicks on your ad, visits your site, and completes your desired action.

Pay-per-action ads complement your current campaigns by providing a new pricing model that extends your reach and allows you to pay only when a defined action is completed on your site. This beta feature is currently available to AdWords advertisers in the United States on a limited basis as part of our beta test.

As soon as Pay Per Action is released within the UK we will update our services to provide this new and exciting advertising method.