As we've mentioned, organic search and PPC are like PB&J--they're best together. Getting ranked in organic search has been studied quite a bit, but what will get your PPC ads the most impressions? Google AdWords advertising is now saying that Ad Extensions on PPC ads may impact the number of impressions your ads will get. Watch today's Daily Brown Bag to learn about what Google is saying about Ad Extensions and their impact on your AdWords campaign management, and how you can get the most out of your PPC efforts.
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Hello, and welcome to the Daily Brown Bag. Today we want to talk about a recent update to Google’s Ad Rank where now Ad Extensions will be incorporated into where your ad shows in the Google paid search results. I’m Chad Hill, and I’m joined by Adam Stetzer.
Yeah, good morning, Chad. Ad Rank. Wow, this is a fun new term! We’re talking about Google AdWords and advertising on Google. First, a few stats. There are over one million advertisers using AdWords, so these are people bidding for a position to advertise through Google, and with over a million advertisers, there is fierce competition to have your ad shown the most. You’d think that’s it’s pretty simple, put it money and get your ad shown, but it actually isn’t that simple. Why? Because there’s such demand for these ads. Google ads generate over 40 million calls each month, and in the mobile world this is just taking off. Here’s an interesting stat for you, Chad: 50% of mobile search consumers said they would turn to another brand if they click on an ad and there’s no call option.
So, the mechanics of how you place your ad are important. People think just being there is important, but it’s more than that. Here’s another stat: the typical small business wastes up to 25% of its PPC budget each year, and they really need to optimize those Google ads. So, what you’re talking about with this change Google has introduced for its Google AdWords advertising rank algorithm, not to be confused with the organic search algorithm on a totally different side of the business, is important to cover here because now these extensions and formats are now being considered. Let’s help people understand that. I’m sure that’s confusing.
It definitely is, but I think the easiest way to understand it is to think about it from Google’s standpoint. When someone searches on a term, Google wants to place the PPC ad that has the best chance of getting clicked in front of that user. The reason they want to put the ad that has the best chance of getting clicked is that they only have a chance of getting paid when someone clicks on an ad. So what they started with was first, who pays the most per click? So, if I pay a lot of money, I could get a higher ad rank and show up higher than my competitors. But, what they quickly realized, and this was a long time ago, was that one person’s ad, if it has a much higher click-through rate, might benefit Google more than an ad from someone who is willing to pay more, but Google only gets paid if someone clicks on it.
So the latest twist that’s added in is that they’re now saying is that we have all these little enhancements to the ads that you can add to your ad. These are things like showing a mobile number or maybe showing your local business address in the ad or showing your review data in the ad. So, what they’re saying is that now a third element is going to be incorporated into whose ad is shown. There’s what you’re willing to bid, what your historical click-through rate or quality score is, and now whether you’re using all the bells and whistles Google has, because what they’re saying is that if you use their bells and whistles, you have a much higher chance of getting a click which is good for them, and of course good for you.
Okay, so to kind of simplify that, it’s just not as easy as opening a Google AdWords advertising account and shoving in your credit card. Even if you do have a big budget, which we know most small business don’t and their first obstacle is budget, and you go in and say, “I’ll be the highest bidder,” Google is now saying that it’s not that simple because sometimes the highest bidder isn’t the best user experience. So, as I listen to you say that, Chad, I think, “Wow, those Google guys are good.” Even when it comes down to placing their ads, they’re really working on that user experience and they’re forcing you to have to optimize it.
I think for internet marketers and people in our reseller community, this is pretty good news, and it’s perhaps self-serving for us to say that this is why you need to outsource your advertising spend to an analyst who understands all these things. It’s another reason, because that algorithm just got that much more complicated, but we want you to understand that because it’s certainly self-serving for us to say. We want to hear your thoughts! Have you run PPC campaigns and thought it was a waste of money, or maybe you’ve figured something out on your own and you don’t need to outsource. We’d love to hear that, too, so we can have a back-and-forth. If you find this information useful, we hope to see you right back here tomorrow for another video, subscribe to our YouTube channel.