Yahoo has added an interesting revision to their Terms of Service impacting PPC advertising on Panama (see the section on “Sponsored Search and Content Match”):

“OPTIMIZATION. In the U.S. only, for those advertisers not bound by an Insertion Order, we may help you optimize your account(s). Accordingly, you expressly agree that we may also: (i) create ads, (ii) add and/or remove keywords, and/or (iii) optimize your account(s). We will notify you via email of such changes made to your account(s), and can also include a spreadsheet of such changes upon your written request. If you would like any of such changes reversed, please reply to such email within 14 days of the change(s), and we will make commercially reasonable efforts to reverse the change(s) you specifically identify. Notwithstanding the foregoing, you remain responsible for all changes made to your account(s), including all click charges incurred prior to any reversions being made. It is your responsibility to monitor your account(s) and to ensure that your account settings are consistent with your business objectives.“

My initial opinion is that this move seems radical.  Not only does Yahoo claim the right to choose which optimization tactics will best serve your needs (possibly including adding/removing keywords, creating new ad copy text, and anything else that might be deemed “optimizing your account”), they will implement these changes without your approval.  In fact, the policy states that they will alert you by email if such changes are made, and only supply details of the applied changes upon written request.  If you choose not to keep some or all of their changes, they will make a “reasonable effort” to change them back, but during which time you will be responsible for all charges incurred. 

Wow.  This is a pretty major shift in thinking.  While Yahoo probably thinks that these changes will always be well-received, as I’m sure they will do their best to truly make their program’s performance improve by doing this, systematically applying these changes with no formal consent represents a decrease in control for the advertiser.  As a provider of pay per click account management, I can tell you that saying “Yahoo did it” is not a suitable answer for the question “why did you write this ad copy?” or “why did you choose these keywords?”.

Lastly, I’m stunned by the final sentence in the policy, “It is your responsibility to monitor your account(s) and to ensure that your account settings are consistent with your business objectives”.  If Yahoo makes mistakes (which it is likely to do, not knowing the advertisers true objectives in advertising) and changes accounts to make them “more successful”, it is the advertiser’s duty to correct police them? 

It really sounds like a very, very bad idea.