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Yahoo Introduced Pictures in Sponsored Ads

Erick Schonfeld at Techcrunch reports that Yahoo is now testing with pictures inside Sponsored Advertisements.

For instance, when you perform a search on Yahoo for “eBay” you will notice that the sponsored ad contains a graphical logo of Ebay, just like the above screen shoot.

Yahoo’s Spokesperson confirmed that the company is testing new search ad units that include “images, brand icons, videos, search boxes and deep links.”

My Two Cents

I certainly don’t think that this is a bad idea for Yahoo. Infact for brand queries, I think it will really help the advertiser to increase its brand recognition as the searchers will over time associate the logo/image with the brand easily.

But the downside of this feature is, the advertisers will probably spending more because the CTR (Click-Through-Ratio) will definitely be a lot higher compared to the traditional sponsored ads. So even if the advertiser ranks really well organically, people will tend to click on the sponsored ad (with a Logo) without being bothered to see the organic results down below it.

So, what do you think ?