Individual entrepreneur Vladimir Pokhilenko, engaged in the registration of firms, sued the company Yandex. In the statement of claim there are no financial requirements, the requirement is only one: to force Yandex LLC to properly execute the contract.
In his statement of claim, Vladimir accuses Yandex of violating the advertiser's rights under the contract, as a result of an increase in the auction price of keywords due to the low CTR of ads (the ratio of the number of impressions to the number of clicks), as well as disabling them altogether.
Indeed, in July 2007, Yandex introduced a new rule in Direct, according to which the minimum transition cost per ad (price per keyword) became dependent on the effectiveness of the advertising campaign (CTR). In other words, you can save the selected price for the transition only on the condition that as many people click on the ad as Yandex considers satisfactory. If there are less clicks on the ad, the price automatically becomes higher. According to Vladimir, the number of impressions and clicks directly depends on the position purchased by the advertiser, and not on the “clickability” of the ad. It is logical to assume that more expensive clicks that bring an ad to the first positions in the show, a priori, have a higher CTR than ads that do not appear on the first search page. In other words, companies that are willing to pay for higher positions get the opportunity to advertise for the real cost of the transition, and an advertiser with a small budget should pay more for clicks. It seems that Yandex has found a way to artificially inflate prices for contextual advertising and at the same time left advertisers with a limited budget at a disadvantage, which are the majority, and many of them see the only available advertising channel in contextual advertising.
The documents submitted by Yandex LLC at the preliminary hearing in the Arbitration Court indicated that none of the documents contained a condition according to which an increase in CTR should automatically reduce the price per click, and no obligation of YANDEX LLC to reduce the price of a click by contract not provided. Upon closer examination of the Yandex.Direct offer, it becomes clear that it allows you to freely vary the legal language and is clearly not in favor of the advertiser. If you compare it with the offer of the same company Google, which offers similar services in the Russian market, with its clear, ideally verified contract, the advantages are clearly on the side of the latter.
“Yandex.Direct” is not the first time causes dissatisfaction with advertisers. In the spring of 2007, the “Community of the enemies of Yandex” appeared on the Internet, which required him to be honest with advertisers. Judging by the latest entry on August 27, 2007, the community continues to exist and fight for its rights.
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