This Monday Google AdWords made a huge change to ad positions. From now on, Google will display four ads on the top of the results page and three ads on the bottom. Google saw that the click-through rate of the side ads was poor so they will no longer display those side ads, limiting the number of ads from 11 to a mere seven.
This will result in two major changes to the AdWords PPC market:
1. Competition will increase (price will follow)
2. Data will drive growth
Google limited the supply of available Ad space, so the same amount of companies are now competing for less real estate, increasing competition. This will most likely impact pricing. As any economist will tell you, when supply is limited and demand remains the same, price increases. The same amount of companies are now competing for fewer positions, which means those willing to pay more could potentially have an advantage.
But have no fear, Quality Score is here!
Google continues to rely on an Ad's Quality Score, in addition to the bid, to help determine the position of the Ad. This means that the higher the click-through rate, the better the landing page, the more relevant the Ad is to the query, the better the match type, and the more ad extensions included in the Ad the higher that Ad's Quality Score will be. All this leads to a higher placement Google will give the Ad on the results page. This makes optimizing your AdWords campaign to increase Quality Score more crucial than ever if you want to compete for those top four spots!
The only way to optimize utilizing all available data and acting on it in realtime from the search, from Google Analytics, and from your own conversion results (such as profits or lead quality determined from CRM data) is through a Programmatic approach. Programmatic advertising for AdWords is a massive competitive advantage and this change that Google has made to AdWords only increases that advantage. A programmatic approach (depending on the software utilized) is able to optimize for the end result. Essentially a company utilizing programmatic advertising solution is able to optimize for the end result, profit! It can know whether the keyword is worth bidding for in the search and act on all compiled data in realtime.
Finch is the global leader in Programmatic Advertising for Search and Shopping. Whether you're a company looking to dramatically increase your leads and their quality, or an e-Commerce company looking to increase profits from your search campaigns, Finch is the solution to grow.