Does Google’s Ad Change Help or Hurt Marketers?

Click to enlarge this image of a Google search engine results page for "insurance plans." The computer used for this search is in Philadelphia.

Have you noticed that Google’s search results look different lately? In mid-March, Google tweaked the search results page layout. The most notable change, from a consumer perspective, is hyperlinks are no longer underlined, which doesn’t appear to affect businesses. But this update also included a key change to sponsored ads.
Now that paid search results are marked with a small yellow “Ad” box, are they more or less obvious to consumers? Ads remain just as prominent, but appear more like search results and less like advertisements. This is a direct attempt by Google to get more people to click on ads and for them to get more money from advertising.

More people clicking on ads should be good for marketers, right? More clicks equals more traffic to your Web page. Maybe. If the ads are well-targeted and users want to see them, then it’s a great thing! Digital marketers already know that the more targeted your ads, the better they perform.

Let’s use an example of a well-targeted ad. Google users have been conditioned over the years to know that a highlighted bar is an ad. Now that there’s no such distinction, someone searching for Nordstrom might click the ad or the top organic result. Either way, they’ll be directed to the website. No harm, no foul, and Nordstrom receives relevant traffic, either way.

What about a query that’s less direct, such as “best hotels in Vegas”? A user could be looking to book, or could be looking for reviews. If a booking site with the top paid ad sees a spike in traffic, site owners may want to track their conversion rate. Post-change, some of this traffic could be from users who are confused about the new format.

What’s a marketer to do if conversion rate betrays consumers’ confusion? Consider things from a consumer perspective and determine where the wrong turns are in the journey to your site. Take a look at queries and weed out or adjust poorly performing keywords. Lower bids on poorly performing keywords. Then, do the same once a few months have passed and consumers have had time to adjust to the change.

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