Google Change 4 Paid Search Results at the Top of the Page

The latest change to the layout of SERPs (Search Engine Results Pages) has big implications for both paid and organic search

For the last couple of weeks it’s been obvious that Google has been in an experimental mood (so what’s new, right?). Some search results pages have been showing 4 PPC ads at the top of the page, some have been showing 3, sometimes there have been ads on the right side, sometimes not. Well, the dust has settled and now the results seem to have stabilized.

Review the screen captures below to see what’s changed (more observations underneath them)

googles_new_world_for_advertisers

 

ads_at_bottom_of_serp

As the Search Engine Watch observed in a post yesterday, Google has now clarified why they’ve been fiddling: a major change was brewing, and this morning we have a chance to taste the coffee. It might be a bit bitter for many AdWords advertisers. Google has now eliminated the right side display of ads (also known in technical terms as “paid search results”). The obvious implication is that about 2/3 of advertisers have just been dumped into the “invisible” category. In the past Google had bid estimates for “first page bid” and “top page” bid. Until now you could be “above the fold” with a first page bid, but now you will be either at the top of the page or way down at the bottom with your ads. The only way to be above the fold is to bid for the top 4 positions. And since Google won’t always show that 4th position, you really need to bid for the first 3 spots or you’re off the back.

My Predictions for Paid Search

Most Obvious Implication: Cost for AdWords Clicks is Going Up – Even Faster

We’ve already seen a lot of rising click costs for advertisers as Google has honed their AdWords model and, as importantly, as Google organic search policies have made organic search results territory increasingly less reliable ground for building your business model. But apparently those costs aren’t going up fast enough for Google, since the need to be seen in search results will without question drive more demand for an increasingly scarce resource: above the fold page real estate.

Product Listing Ads Will Become More Valuable

According to the Search Engine Watch article PLAs (product listing ads) will not be affected by this layout change. A quick search this morning seemed to confirm this (see screen capture) below. This means that any advertiser who sells product and hasn’t yet set up or began optimizing PLAs is missing a great opportunity. With less screen clutter and competition for clicks, PLAs should see improvement in performance. Plus, since it’s harder for a competitor to participate meaningfully in the PLA market, it might not be as subject to click inflation (in my opinion and experience PLAs, where they can be used, are already a better value than traditional AdWords ads).

product_listing_ads_still_at_top_right_of_search_results

Bing Gets More Business

For advertisers who simply can’t afford to capture those top 3/4 spots in Google, there is an option: Bing. Although Bing has a lot less traffic, we’ve often seen very good results from Bing campaigns on a Cost-Per-Acquisition (CPA) basis. If you are invisible on Google and can’t afford to change that, definitely you need to be testing whether Bing can take up some of the slack.

My Predictions for Organic Search

The tennis match between organic and paid continues. As organic search results have become more costly to achieve (due to the high cost of content creation and quality link attraction), many businesses have thrown in the towel on organic and found it cheaper just to buy visibility through AdWords. Depending on how much price inflation hits clicks at the top of the page suddenly even the high expense of organic search optimization may become once again a sensible alternative to ads.

I would imagine that companies that have blown off organic will now be tempted to take another look either at seeking professional help with organic search optimization or, alternately, acquiring the SEO training and talent in-house that the company needs to drive it’s own organic search effort.

My Non-Predictive, Speculative Rant About Fish Mongering

The part of this that bugs the heck out of me is the statement that Google is trying to bring the desktop experience more in line with mobile. I think that the fishmonger is selling us an obvious red herring.

This is the age of responsive design. Who makes a web page on desktop “match” the one on mobile? Layouts are supposed to be different on mobile vs. desktop, even if you’re designing “mobile first.” If not, then why does Google still place PLAs off and to the right? That’s a desktop only layout.

And if desktop is supposed to match mobile, then why do we see different layouts where the Knowledge Graph is involved (see the screen captures below)

 

google search for george orwell

Google search for George Orwell. Knowledge Graph occupies its traditional position at top right.

 

mobile search layout

Google search for George Orwell on mobile. Surprise, surprise, a different layout.

 

As usual, I am a skeptic about Google’s reasons. I tend to evaluate every Google change as primarily an effort to maximize profits, and only secondarily driven by user best interests. In this case, clicks on right-hand side ads have always been a minor portion of Google’s revenue. Why give the false impression to low budget advertisers that they can be on page one of search without having to pay “their fair share” (in Google’s opinion). My guess would be that Google has tested and analyzed and found that the total profit will be greater from the new layout. If they are right, better get used to it. And you’d better start reaching for your wallet. Again.

What is your take? Are you a skeptic like me? Or do you see this change as being what it’s claimed to be: a modification to, for some strange reason, make desktop “match” mobile?

No Paid Search Ads on the Right Side of Google SERPs, Now We Know Why was last modified: February 22nd, 2016 by Ross Barefoot
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