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The information provided below was not taken from a manual, so some if not all of it can be completely incorrect.

Yahoo's Traffic Quality (TQ) Score is used by Yahoo to determine how well your traffic converts for the advertisers, how much the advertisers are charged for clicks, and how many the domain owner is paid for the click as well.

TQ scores are normally updated every Thursday. The scores are usually in your account by Friday at the latest. The scores affect your revenue from Thursday morning until the following Wednesday night.

A TQ score is calculated based on clicks to the advertiser. Searches, hits, 404's, day of the week, and many other myths are not used in calculating a TQ score. A TQ score can only be calculated if an advertiser has the YSM Conversion Tracking code on their site. There is a patent application that was filed by Yahoo about the TQ system for more information on it please see http://www.freshpatents.com/Publishe...0080154717.php (If anybody can get the images from the USPTO please post them).

The TQ score is calculated by country/market. Today we only show TQ scores based in the country that you have the most traffic. Within 2 weeks we will be providing TQ scores in all countries that are supported. On average it takes about 100 clicks per day per market to get a TQ score for about 2 weeks. This is no guarantee that you will get a TQ score, but it usually works this way normally.

When a click happens Yahoo evaluates your TQ score and determines what the advertiser should pay based on this score. If you don't have a TQ score, it's based on a average. Once a week, probably Wednesday night they crunch all of the conversion data based on the past 7 days and add it to the previous 21 days of data to get your TQ score by market.

From my understanding your TQ score is calculated based on the past 28 days of data.
past 7 days - 40% of your TQ score
Days 8 - 14 - 30% of your TQ score
Days 15 - 21 - 20% of your TQ score
Days 22 - 28 - 10% of your TQ score.

Originally we were under the impression that a TQ of 10 and if the advertiser wanted to pay $1.00 then the advertiser would be charged $1.00. If the TQ was a 9, then $0.90, and so on. But that was never the case. If you had a TQ of 5 then the advertiser in most cases was still charged around $0.85. As time has gone by and with the new changes implemented by Yahoo on September 9, 2009, I think the numbers are a little more accurate of of the quality of the TQ score. I'm seeing that a TQ of 5 is costing the advertiser about $0.65 if they wanted to pay $1.00 for a click. So the higher the TQ in theory the more money you should make.

Before the changes on September 9th, Yahoo had 33 categories and everything used the conversion data from these categories. This also meant that if you had two domains, one that had all clicks from adult keywords and one that had all clicks from the shopping category and all of your traffic was from the US. You would actually have two scores, one from the adult category and one from the shopping category. When combined these two scores became your TQ score. I am not sure how this part of the system works after September 9th.

The last part of the TQ score which is the most important is the conversion data. Yahoo uses their own properties and a few selection partners proterties for their baselines. So for example, the term "car wash" may convert at 1:50 so for you to get a 10 for the term "car wash" you have to convert at better than 1:50. So let's say you own carwash.com and the main term is "car wash" and you send 100 clicks a day to one of those advertisers you have to get 2 people to convert for those advertisers to get a 10 for that term. If you don't have clicks on any other term then you will have a great score and this is where this lesson ends. But most of us have clicks in many different categories and across many different domains and across many different markets. So this is where it really gets confusing.

So you have computer.com, and 100 people click out a day on "computer", which in Yahoo's world is in the "computer" category. 50 people click out on "laptop" and 50 people click out on "netbook", and these two keywords are also under the "computer" category as well. If the baseline for "computer" is 1:75, the baseline for "laptop" is 1:136 and the baseline for "netbook" is 1:12 it would all be very easy to calculate your TQ score is we knew what those baselines were. But we don't. The other issue is those keywords I have been talking about are short tail keywords, keywords that are very common. The keywords that make things more interesting are the long tail keywords, keywords like "donny's computer company" or "San Jose hosting facility". Not many people click on those keywords everyday, but from my understanding across Yahoo's network that makes up like 65% of all clicks each day. So if they don't have a baseline, how do you know how they will convert? They get rolled up to their parent in the category system. So "donny's computer company" may be under "computer company" which may convert at 1:55 or maybe it's doesn't have a baseline either, so it might be directly under "computer".

Yahoo's TQ system was created by a bunch of microeconomist's and from my understanding Google's version was created by a similiar group of people. The biggest difference is Yahoo actually shares their score with you.

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