How advertisers should react to fewer ads showing on Google

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How advertisers should react to fewer ads showing on Google

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After a quiet start to the year with few notable changes in AdWords, the past month has seen a lot of interesting things happen, including changes to the layout of ads on search results pages. I shared my first thoughts on this change on my company blog; but now that it's been live for a few weeks, I wanted to think about ways to optimize the affected accounts, including using bidding rules to position and optimizing for Quality Score. What has changed for ads on Google The week of February 19, Google began removing Right-Hand Ads (RHS), reserving that space instead for Product Offering Ads (PLA) and the Knowledge Panel. This change reduced the maximum number of text ads on the page from 11 to seven. A change as big as this has caused some angst among advertisers, but the impact appears neutral to positive, according to multiple research: iProspect noted that RHS ads had terrible click-through rates (CTRs) anyway; mark | RKG analyzed the statistics two weeks after the change and found no major impact on the bigger picture; and others reacted the same way.

Google's Matt Lawson even said that "[o]n the whole, this change is neutral for small advertisers." New google ad layout on serps Google's search results pages no longer display text ads on the Macedonia WhatsApp Number List right side, and a new ad is now shown above the organic results. I made my own estimates (which I'll share below) to gauge the impact of the change, and I also believe this is a positive net change as it opens up a very large number of new clicks to advertisers. Regardless of any studies concluding that the overall or average change will be neutral or positive, remember that individual results may vary. None of us are average. We are all individuals, so we need to pay close attention to how we are individually affected by change. In this election season, let me put it this way: if any of the presidential candidates proposed tax changes that would reduce taxes, I would not vote for that candidate without first verifying that my individual taxes would also decrease - the total of all taxes has no impact on my own bank balance.

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The change makes 18% more clicks available This explanation comes from my previous blog post, but in case you missed it, I'm including it with more detail here, as it gets to the heart of why I think this is a positive change. Let's look at two facts before estimating the impact this change could have. In 2011, when I was on the Google team, we came to the conclusion that "on average, this placement [bottom ad] performed better than secondary ads in terms of click-through rate in our tests." As has been covered extensively as part of this change, ads displayed at the top of the page have a significantly better click-through rate (CTR) than the same ads on the RHS. Now let's look at some estimates to help you determine what the change may mean for advertisers. To simplify the example, we'll assume that there were always three ads at the top and 8 on the RHS, and now there will always be four at the top and three at the bottom. This is obviously not the case, but it is enough to allow us to compare some possible numbers before and after the change. Prior to the change, advertisers competed for clicks from three lead ads and 8 RHS ads.
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