No More Side Adwords - How This Changes the Game and Affect Advertisers

23 replies
  • PPC/SEM
  • |
Since Friday, Google does not show Adwords on the right side of the screen. That space will now be only for product listing ads. Remains to be seen if there will be more of those. Also, instead of up to three ads above the SERPs, there will now be up to four. With the number of advertisers there is, estimated at over 1.2 million, there should be no problem filling all four ad spaces for most search terms.

Let's first try and determine how this affects Google as far as revenues are concerned.


I tried to determine from client data how much of a revenue drop Google could expect. This is difficult for many reasons. Most of my ads are high quality and show in the first few positions with less data in the 5th position onwards. Because of that, a comparison of CTR may not be fair. I do however have data from a client for which I only did an analysis. They had lots of data in all positions, a wide variety of quality and competition of all kinds. Perfect. Well, almost since I'm looking only at one client but should give a good idea.



Calculating a revenue per thousand impression for the first page (ad positions 1 to 11), this came to $26,555 for this particular client. The revenue per thousand for just the first four positions was $20,200. The impressions for both groups was nearly the same: almost 4 million for the first group and nearly 2 million for the second. If this client is typical and more or less representative of all advertisers, Google generated only $6,500 more per thousand for the same number of ad servings. Of course, the numbers in other niches will be totally different. But let's assume that revenues will drop by 31%.



Today, part of this downfall of nearly one third may be taken up by the fourth ad. Being promoted from the side to above the SERPs should have a higher relative CTR. Using this client's data, the CTR increase from fifth to fourth position is a little over 15%.


So that leaves 15% revenue reduction, probably less. And this assumes the same CPC they will get in fourth place than what it was in fifth. The CPC could be a bit more or a bit less so I call that even over all advertisers.


Obviously Google believes it can make up for it. No way they will want to generate less revenues from ads. The shareholders won't stand for that. They could make up for it with the PLAs but it seems unlikely they would generate more revenue there. Of course, Google could have something in mind concerning the PLAs that could change that.


But overall, I say this move will not affect the bottom line at all. It will likely improve the overall quality of ads, a major Google goal.


The big concern from advertisers however is that this will increase the CPCs. Search Engine Watch had a short article on Friday with their opinion that it will. But I'm not so sure.


The general idea is that to get one of the fewer ad spots available, advertisers will increase bids leading to increases in CPCs. One needs to look at different advertisers and figure out what they might do.


An advertiser near the bottom of the page (ad positions 7 to 11) may just call it quits. A few may increase their bid in an effort to get to the top. There are different types of advertisers of course. Those in those positions are there either because of poor QS, despite bidding the "going rate" or those with good QS, will not bid near the going rate for that niche. It is that second group who should stick it out because of good QS.



I always imagine that QS follows a bell curve. A perfect curve would see 20% of advertisers with QS of 1 to 4, 60% in the 5 to 7 range and 20% above 8. But it is likely not a perfect curve. There may be in fact more falling in the 1 to 4 range - the very poor advertisers - with the upper end also shrunken a bit. What this means is that there may be one or two advertisers with great QS but low bids and the reason they are in low positions. I would suggest to them to increase their bid more in line with the average but how many will do so?


Even if they do increase bids to reflect the going rate, that will not change the CPCs of those already above the SERPs. Do the calculation and you'll see that it affects just one advertiser, some times positively depending on QS.



But in general, I don't see CPCs increasing. Why would those already at the top increase their bids? Bringing in new players won't change that dramatically.


It will however affect your impression share. Those in the lower positions will see their share drop dramatically, for many down to almost nothing. Even those at the top may see a drop in share. With less spots available for all, it just takes one to make the necessary adjustments and push you one position lower.



I surmise that is Google's intention in an effort to increase ad quality and as explained, will not have reduce revenues. Having just four higher quality ads - and a push by some advertisers to further improve quality - will see an increase in revenues, even if CPCs are the same or lower. It has also been their view that you should increase ad quality instead of simply increasing bids. This move may help do that and have better quality advertisers.


In my case, I have many clients that are at or near the top so I don't expect to see a major drop in impression share for them. One client for example saw a less than 1% drop this past weekend compared to the previous one. Checking some more, there is generally not a big change and as often positive as it is negative but it's only the first few days. While I don't have many such clients, advertisers in the lower positions will see a reduction in traffic simply due to a reduction in impressions. They are the ones who will suffer most and probably scrambling right now.



As for organic listings, a fourth ad above them pushes these a bit further down the page. This of course makes those more dependent on SEO not happy at all.
#advertisers #adwords #affect #game #side
  • Profile picture of the author Marty Foley
    Originally Posted by LucidWebMarketing View Post

    Since Friday, Google does not show Adwords on the right side of the screen. That space will now be only for product listing ads. Remains to be seen if there will be more of those. Also, instead of up to three ads above the SERPs, there will now be up to four. With the number of advertisers there is, estimated at over 1.2 million, there should be no problem filling all four ad spaces for most search terms.
    Hi LucidWebMarketing,

    During searches I've done today (in Houston Texas), I'm still seeing some ads on the sidebar.

    According to an interesting SEM Post article article about it, a Google spokesperson said:

    "We've been testing this layout for a long time, so some people might see it on a very small number of commercial queries. We'll continue to make tweaks, but this is designed for highly commercial queries where the layout is able to provide more relevant results for people searching and better performance for advertisers."

    Updates on Google's 4 AdWords Ads & No Sidebar Ads Change

    We can expect this will mean higher CPC's overall - and more profit for Google - due to increased competition for fewer available ad slots on search results pages.

    All the more reason to get CTR's as high as possible, to optimize website conversion rates, and apply other strategies to increase PPC performance.

    Marty Foley ~ PPC Traffic & Conversion Mad Scientist
    {{ DiscussionBoard.errors[10552242].message }}
  • Profile picture of the author Bright Future
    For high competition niches I believe the CPC will go up because many of those who were in positions 5 and lower will increase their bids to climb up to the top. Before this they could get somewhat decent CTR on the right hand side but now it will be the bottom or the top. And they don't want the bottom.
    {{ DiscussionBoard.errors[10553087].message }}
    • Profile picture of the author Mike Anthony
      Originally Posted by Bright Future View Post

      For high competition niches I believe the CPC will go up because many of those who were in positions 5 and lower will increase their bids to climb up to the top. Before this they could get somewhat decent CTR on the right hand side but now it will be the bottom or the top. And they don't want the bottom.
      Pretty much this. Its just a no brainer to me that CPC WILL go up (won't be over night but within months). You might as well get out of adwords if you are going to only show at the bottom of the page. No matter how bad the sidebars were for your campaign it s going to be far worse at the bottom.

      I think any one thinking CPC will not increase is just kidding themselves. You are better off going all in with Organic SEO and try and get positions 5-7 then tanking at the bottom
      Signature

      {{ DiscussionBoard.errors[10554496].message }}
  • A new article on this subject on Search Engine Watch today.

    In the first comment by Julia Logan, she is implying that with no more side ads, searchers will tend to click the other ads more. She may have a point. It's still early and I've tried to compare a before and after picture but there are too many variables and not enough data. But I have seen some CTR increases and in other cases a decrease, a dramatic one for one client although the data is limited and other factors may have come into play.

    As for CPC, a slight increase but not enough however to blame it on no more side ads nor anything else.

    She also makes another great comment later about SEOs should continue doing what they've been doing and competing against the ads. I'm not sure if most SEOs see it that way, but they should and her comment is a reminder or a wake-up call. Certainly their clients should be told or realize this as well but I'm less convinced they do.

    From Larry Kim later on, he says 14.6% of click volume was on side ads. I get just under 50% for the same client I used yesterday. Obviously, they shoot for above organic results so that comment is not very useful. One client gets 3.2% of clicks from side ads.

    He sees no impact on impressions (I disagree as said yesterday, depending on your ad positioning), clicks (ditto) and we agree on CPCs.

    He also says a benefit that all ads can use ad extensions. I'm pretty sure that extensions did not appear for all ads above the SERPs in the past but I'm not sure if it was only for one of the ads there. My recollection and perception may be wrong but seems Larry is of the same opinion. For sure now I see two or three ads with extensions.

    Once again in the comments, some are saying people will leave Adwords. They've been saying that for years. So I don't think that will happen which would lead to less competition and thus lower CPCs.

    One thing I saw in one search already and a commenter has said the same is the PLAs showing above the SERPs. This pushes organic listings further down and even below the fold. It also pushes text ads further down but I'm not sure the effect that will have. From a business viewpoint, Google did well there and not at all surprising.

    I've also seen NO ads above the SERPs and scrolling down, seen them only below the SERPs. That is not good for advertisers but better for SEOs.

    Of the comments, only one I've seen is thinking more or less along the same lines as I am. I guess time will tell.
    {{ DiscussionBoard.errors[10554471].message }}
  • Profile picture of the author derekwong28
    Thanks for the detailed analysis. Quite often there is only 1 result from the SERPs when there are 4 ads at the top. This is definitely going to decrease SERPs traffic and will increase the CPC for the Ads.

    In the beginning, there were only 2 Ads at the top, then it went to 3 and now possibly 4. Not only that, extensions became available which enabled the Ads to take up more space.
    Signature

    Do not get between a wombat and a chocolate biscuit; you will regret it dearly!

    {{ DiscussionBoard.errors[10554629].message }}
  • Profile picture of the author solarwarrior
    They are trying to reduce the influence of SEO
    in the marketplace by taking up more space in the serps.

    Hence, Pay Per Click is always a great skill to possess
    cause it is a faster way to get traffic to your site and you
    can get favorable attention from your advertising platform too.
    Signature

    Offers 1-1 Coaching for Bing/CPA/Clickbank.
    1,248 students have benefited so far!
    {{ DiscussionBoard.errors[10554836].message }}
    • Profile picture of the author Mike Anthony
      Originally Posted by solarwarrior View Post


      Hence, Pay Per Click is always a great skill to possess
      cause it is a faster way to get traffic to your site and you
      can get favorable attention from your advertising platform too.
      Definitely not...PPC specialists just took a BIG hit too. Google is still the number one SE traffic site. The CPC WILL increase and though some amount of skill will be involved it will be people with the cash that win the spots not people with skills

      this is bad news all around for marketers but worse for ppc specialists. Your prospective long term client base using Google will shrink dramatically by the end of the year.
      Signature

      {{ DiscussionBoard.errors[10555225].message }}
  • Mike, I only partly agree with you.

    Obviously, I don't believe CPCs will increase that much. The current advertisers will not all just increase their bids immediately because of this. Why would those already in the top spots do so?

    It's the lower positions that might. But they are there for a reason: their ranking puts them in those lower positions. As ranking is determined by bid and QS, those with lower QS will need to improve their skills. Those with good QS but lower bid, some may increase bids although many will be reluctant to do so. But unless they bid well above the going rate for their niche - unlikely - this won't affect CPCs.

    Many of the low-ranking crowd will surely stop using Adwords. But mainly only for search. Don't forget about PLA, display and remarketing. So while the number of advertisers may shrink a little, I don't expect a huge drop. There's still going to be plenty for PPC specialists to do, but there may be less search campaigns. In fact, I see an opportunity here.
    {{ DiscussionBoard.errors[10557009].message }}
    • Profile picture of the author Mike Anthony
      Originally Posted by LucidWebMarketing View Post

      Mike, I only partly agree with you.

      Obviously, I don't believe CPCs will increase that much. The current advertisers will not all just increase their bids immediately because of this. Why would those already in the top spots do so?
      I think thats pretty obvious (not that it will happen over night). What am I going to do if I am at the five spot and therefore at the bottom of the page? Say I am bidding $5 on a term, have great QS and now getting squat clicks? Captain obvious - I have two choices. get out of adwords for that term or try bidding $6-$7. its nt the people in the top spots increasing their bids because they want to its the guys below raising their bids that starts the bidding war on a term.

      In the past that guy/gal might settle in on the sidebar get some clicks and get some return and reserve his bidding for more high priority terms. Now as things develop along these new changes that guy/gal is likely to get zero or next to zero clicks. So its all or nothing. Not everyone will back out so my friend prices WILL go up in many niches.

      Second extremely obvious thing is that no company just axes revenue thinking it will hurt not help their bottom line. Its pretty obvious google expects the increased CPC to cover the loss of revenue on the side bar ads. I think people who think this doesn't affect pricing long term with increased bidding wars driving up CPC are just dreaming and believing that simply because they hope its so

      As ranking is determined by bid and QS, those with lower QS will need to improve their skills.
      Sorry there are more than enough people in the market that understand QS. Once you get QS right then it becomes a who bids higher game. All you need is four people on the entire planet up on QS in your niche and the fifth guy either ups his bid or gets out of trying to get any traffic from that part of adwords

      Many of the low-ranking crowd will surely stop using Adwords. But mainly only for search. Don't forget about PLA, display and remarketing.
      No one has forgot about that its just not part of the discussion since this change by Google had nothing to do with any of that. I realize people into being Adwords specialists want to act like nothing has changed but the fact are there was a good portion of the small business market that was content to get some clicks from side bar ads and not have to go after top three on every term. It just became a lot harder to justify the costs of using adwords on the search result pages for many of them..
      Signature

      {{ DiscussionBoard.errors[10557237].message }}
  • Profile picture of the author fasteasysuccess
    I think really if look overall, cpc has to go up. Most likely the competitive niches will see the spike, then slowly other niches as people raise their bids to raise to the top, will raise.

    It all comes down to supply and demand now because google knows that since limited spots and only certain people can grab it, the cost per click average can be raised easily. Like always, they supposedly wont let you overbid, however with limited spots, people are naturally going to jack up max bid anyways causing raises on cpc.

    The bad news and good news is that it will basically force a lot of people out of the ppc world on google, but the good news for the smart ones...they will improve quality of campaign to keep costs better, but again, a lot of people are going to not mess with that at all and just try to outbid others causing a lot of people to pay more than they should.

    I don't think anyone should run from Google, but definitely play it smarter to benefit you and everyone else.
    {{ DiscussionBoard.errors[10557253].message }}
    • Profile picture of the author dburk
      Will CPC costs go up?

      Perhaps, in some cases, yes. However there is a definite ceiling on how high they will go. most advertisers know their numbers and will only increase bids if they can make more profit by increasing the bid. That's not to say that we won't see a few bidding wars for the remaining ad positions, we are likely to see that play out in some niches.

      The truth is that these bidding wars for ad positions have been occurring all along, and advertisers in competitive niches have been testing ad positions and measuring profitability to find the most profitable ad position and Max CPC bids. That has not changed and will not likely effect those competitive niches. It's not unusual to see the bulk of all online sales come from the top ad position.

      I hear people talking about CTR, and click share, but the reality is that the bulk of the commercial transactions for many niches are dominated almost exclusively by the top 2 ad positions, in many cases greater than 90% of all revenue generated by ads come from those top 2 ad positions. Removing the side ads may actually improve results for advertisers in the top ad slots.

      This move, in my opinion, is simply Google making changes that users want. User behavior has changed over the past few years. The percentage of online transaction from top ad clicks has increased to the point that they make up about 95% of all ad generated revenue. The side ads have been generating a very small amount of revenue for advertisers, in many cases the side ads were significantly less profitable than top ads for advertisers, when considering total profits.

      To me this just seems like Google is recognizing what most advertisers have already realized. Most users, that are in the market to make a purchase, have been ignoring the side ads, and many users do not make a distinction between the top ads and organic results. More and more, in niche by niche, we are seeing users click the very top listings and do most of their business with those top ads only.

      It seems to me that more and more users trust Google's ranking of ads and consider the top listing the best choice, and in many cases that is true. Advertisers must compete for those top ad slots and deliver enough value to outbid competitors. Those advertisers that can derive the greatest profit are often those that offer the greatest value to users, and are the ones that are likely to own the top ad slots. It is the natural result of Google's policy enforcement and ad rank scores that are strongly influenced by Quality Scores.
      {{ DiscussionBoard.errors[10559179].message }}
  • One thing to keep in mind is that ad positions below 5 appear NOT to be eliminated, simply moved to the bottom of the page. So there is still a fifth to eighth (the max?) ad position if there is enough inventory to fill them. So that is not changing, just how and where the ads are displayed.


    Given that and the way I originally read it that there would be only four ads, not eight, most will not see much difference in impressions. They may see a drop in CTR however if searchers click less the bottom ads than they used to on the side ads. But that remains to be seen. It may not be all that different.


    But as you said Mike, a company doesn't apparently cut 63% (cut 7 of 11 ads) or 27% (3 of 11) without making sure they can make it up. As said in my OP, that's a simple view and the reality is that cutting ads a certain percentage does not translate in an equivalent cut in revenues. So the bottom ads must be generating the same or more revenues than the side ones, even with up to three ads less. Plus, the old fifth ad now being fourth will generate more than it did before by “moving up” one notch simply with a higher relative CTR that I calculate at 15%, maybe more. Also, ad extensions are shown for most of them, even at the bottom, whereas I'm pretty sure that was not the case before. That surely has an effect that surely Google knows about. They've been testing this for years.


    So there's not much that really changes. If those who used to be on the side wanted to be above the SERPs, they did what they thought would be right for them. Now, it's the same thing except that you may want to move from the bottom to the top. So there's no reason to think there would be CPC increase now or later. Just normal advertiser activity. Those most affected would seem to be those who were in the 9-11th positions before.


    Fasteasysuccess said it best in the post above: you have to play it smart to benefit not only you but everyone else. That's always been the case. This new look doesn't change that.
    {{ DiscussionBoard.errors[10557770].message }}
    • Profile picture of the author Mike Anthony
      Originally Posted by LucidWebMarketing View Post


      Given that and the way I originally read it that there would be only four ads, not eight, most will not see much difference in impressions. They may see a drop in CTR however if searchers click less the bottom ads than they used to on the side ads. But that remains to be seen. It may not be all that different.
      You are daydreaming my friend. We've known for years and years and years that links lower on the page get very few clicks. Its that way on Google and just about every site on the planet.


      As said in my OP, that's a simple view and the reality is that cutting ads a certain percentage does not translate in an equivalent cut in revenues. So the bottom ads must be generating the same or more revenues than the side ones, even with up to three ads less
      more day dreaming. They cut it because they intend to have more four ad placements at the top and as just about everybody knows they know the bids will go up on the top four. It has NOTHING , NADA to do with any "reality" that bottom ads magically are going to getting more clicks than they do historically (in order to do as well as side placement higher up did).

      That surely has an effect that surely Google knows about. They've been testing this for years.[/FONT]
      yep and they know they will make more money with four top spots. Has nothing to do with lower ads magically doing the same as side bar ads


      So there's no reason to think there would be CPC increase now or later. Just normal advertiser activity.
      Hey can't stop you from daydreaming. Just about every trusted source in PPC I have read agrees prices are going up but hey on WF there's always someone daydreaming that reality and common sense is something else than what it is.
      Signature

      {{ DiscussionBoard.errors[10557787].message }}
      • Originally Posted by Mike Anthony View Post

        NADA to do with any "reality" that bottom ads magically are going to getting more clicks than they do historically (in order to do as well as side placement higher up did).
        Mike, I'm not saying that that bottom ads WILL or DO get higher click rates as side ads. But as you said, if Google had determined that they'd get less revenue, they very likely wouldn't do it. So they must know that revenues will not be impacted.

        It doesn't mean that it's because CPCs will be higher. Google doesn't look at CPCs. Their metric is revenues per thousand impression. That's what QS is about.

        I may be daydreaming but I've looked at this all week objectively and logically. It's part of my job as some clients called with "OMG! What do we do?" to which I reply "Don't panic". The work I do to accounts, some for years, is to minimize disruptions when changes like this happen.
        {{ DiscussionBoard.errors[10557893].message }}
        • Profile picture of the author Mike Anthony
          Originally Posted by LucidWebMarketing View Post

          Mike, I'm not saying that that bottom ads WILL or DO get higher click rates as side ads. But as you said, if Google had determined that they'd get less revenue, they very likely wouldn't do it. So they must know that revenues will not be impacted.
          sure because they know the increase in cpc which everyone but you seems to know is coming will make up for it. How often does this have to be covered?

          It doesn't mean that it's because CPCs will be higher. Google doesn't look at CPCs. Their metric is revenues per thousand impression. That's what QS is about
          Who doesn't know what QS is about? How in the world does that change anything in regard to prices going up? Because like some WSO you think only a few people in the world understand QS?? said it before mate....just daydreaming. This is the con job that a lot of ppc people I know try to sell with google sales talk - that somehow google cares just as much about QS as they do about price bidding. That if you just have the Ninja QS skills you can rank higher in GA without bidding high. Total malarkey. Go ahead get me the top spot in GA for a top commercial term for 20 cents per click. does QS help? sure but at the end of the day in many competitive searches you are going to have to pony up the cash because everybody has good enough QS so the only other thing to compete further on is bidding more cash. Google knows that and knows what happens when even one person in a niche starts bidding up - ripple effect....basic economics of auctions.

          Thats why they are willing to make it a four spot game rather than 6, 7 or more. If you have less bones to fight over the competitive bidding to get one of those bones gets fiercer.

          I may be daydreaming but I've looked at this all week objectively and logically. It's part of my job as some clients called with "OMG! What do we do?" to which I reply "Don't panic".
          and what else can you say to your clients?? fire me? Theres really nothing objective or even logical about a person who has PPC clients trying to minimize the impact a change might make to their business. every service provider facing changes always tries to minimizes the impact a change makes and tries to sell that reasoning to their clients.

          Such is life.
          Signature

          {{ DiscussionBoard.errors[10559068].message }}
  • Profile picture of the author Janice Sperry
    Did they send any notice they were doing this? I had paused my last campaign so maybe I missed it. I just stumbled on it doing some personal searches today and then I found this thread. I think I would be upset if I had money being spent and they changed the real estate for my ads without telling me. I know positions change all the time but this is VERY different and you would think they would give some advance notice. (I know I am daydreaming too. ) Going from a sidebar to the bottom is a huge disadvantage.

    I think the bids will definitely go up and for some keywords they will skyrocket.

    On a side note as I was searching I did find myself focusing more on those top paid spots then I ever have in the past. Maybe because it was so new or maybe because it is exactly what Google and advertisers want - more eyes on the ads.
    {{ DiscussionBoard.errors[10558018].message }}
    • Profile picture of the author Mike Anthony
      Originally Posted by Janice Sperry View Post

      I think I would be upset if I had money being spent and they changed the real estate for my ads without telling me. I know positions change all the time but this is VERY different and you would think they would give some advance notice. (I know I am daydreaming too. ) Going from a sidebar to the bottom is a huge disadvantage.
      Yes they definitely should have sent out notices and there's not excuse for this. There might even be some lawsuits over it. If I pay for my ads to show at the top of a print ad or tv screen and they move it then they ought to notify clients they are doing this, Even if its ads that only pay out for clicks not impressions I still need to be informed by any change that WILL affect my clickthrough rates.
      Signature

      {{ DiscussionBoard.errors[10559123].message }}
  • No notices that I know of. It's not the kind of thing they'd send a notice to advertisers for. The first I heard of it was on the weekend on SEW. But they have been testing this since apparently 2010. They are always testing things all the time so nothing new there.

    I like the cleaner look. And yes, I've also found myself paying more attention to the ads. Another thing I noticed is that the ad just before the SERPs don't have ad extensions and I think is a deliberate attempt to make it look more like an organic listing. This could affect your strategy.
    {{ DiscussionBoard.errors[10559056].message }}
  • Profile picture of the author Janice Sperry
    Hypothetical...

    I am wondering if spot #4 might be a good strategy at least temporarily. Many long time seasoned searchers automatically skip right to the organic listings to avoid even looking at the paid ads. A compelling headline right about where they are used to looking might just attract some clicks. They see your ad before they realize the real estate has changed. The 4th spot should also be a LOT cheaper for most keywords. Disclaimer: Most of my hypothetical thinking is proved false by testing.
    {{ DiscussionBoard.errors[10559268].message }}
    • Profile picture of the author Mike Anthony
      Originally Posted by Janice Sperry View Post

      I am wondering if spot #4 might be a good strategy at least temporarily. Many long time seasoned searchers automatically skip right to the organic listings to avoid even looking at the paid ads. A compelling headline right about where they are used to looking might just attract some clicks.
      Its probably half and half. I know I don't count spots. I just click the first result without the ad icon.
      Signature

      {{ DiscussionBoard.errors[10561125].message }}
      • The people who used to be in spots #5 and lower are now being pushed down towards the footer. That's Google's way of punishing people who don't optimize their campaigns and who aren't actively targeting the top spots. Those companies who were just hanging out in the sidebar hoping for the occasional clicks, Google is telling them to pay attention, up their bids or else get buried.
        {{ DiscussionBoard.errors[10574043].message }}
  • Exactly Janice about what I said about your strategy. Kudos to you for thinking about it as well. To me, you are just the kind of advertiser that has better chance of success. It's thinking outside the box and using innovation. Actually, don't even bother with the box.

    However, don't go thinking that the CPC will be lower in fourth spot. But you are right that it may produce a click rate not all that much different than the top spot. I've seen many cases where the top ads get nearly identical CTR. The CPC won't matter when your sales increase.
    {{ DiscussionBoard.errors[10559485].message }}
  • Profile picture of the author Rafay Zafar
    tbh, advertisers appearing below 5 weren't making any money anyway so i dont think this change will mean much for them. So yes, i think cpc will remain pretty much the same.

    The biggest impact of this change will be on organic traffic for commercial and local searches. This will drop by at least 2-5% and continue to drop as the advertisers in the top 4 spots continue to optimize their ads.

    Given that mobile search traffic is now greater than desktops, it is hard to imagine why a local consumer would bother scroll down all of the ads and map listings to view the organic results.
    {{ DiscussionBoard.errors[10611263].message }}

Trending Topics