After the announcement made a few months back of a prominent change of removing the ads on the right side of the Google desktop, there has been a tough competition for advertisers. The ads will now be placed only towards the top or the bottom side of the search results. In fact, this big change has been rolled out to every Google search globally. Ads will no more show on the right side of the Google desktop search results. Find more details about this Google update on http://www.flow20.com/blog/google-ads-removed-from-the-right-and-how-it-will-affect-advertisers/. However, there are two exceptions to this as listed below:
- PLA or Product Listing Ad
- Ads that appear in the knowledge panel.
The cost per clicks will certainly go up as there will be tough bidding done to be among the top four. The PLAs will be an exception and will continue to appear on the right side of commercial search results. And, the knowledge panel that displays business information will also continue to appear on the right side of the search results. Now the question is the impact on the cost per click for advertisers. There may be huge competition, but the loss is not much for advertisers. It will cost a lot more to obtain your text ad to appear and hence smaller firms will face tough competitions with companies that have higher advertisement budgets. Although the right side ads were not too strong and the inclusion of the 4th top most text ad can help in alleviating the loss.
Impact on advertisers due to removal of Google ads on right
- Removal of ads from right side search results means there is not much of real estate ready for ads. This will drive up the cost per clicks for the slots made available.
- The landing page, the quality score bar and the KPIs are increased and advertisers will have to sharpen their creativity to ensure that their ads attract the top of page 1.
- In case of product sellers, they are expected to feel a huge impact. For product searches that are competitive, there are big retailers and if you are a small retailer, you only had a choice of text ads.
- For service sellers, there will be a rise in the CPC from 20 to 60 percent.
Greater emphasis on use of ad extensions
Google is striving to monetize the SERP and to create a greater experience for users. Ad extensions will provide more information for Google users and offer the best experience in terms of SERP. As far as text ads are concerned, they will get higher CTR with ad extensions. Majority of ad extensions has only shown in the top segment ads. Google will remove ads also from the side rail to ensure that all text ads are followed by ad extensions. As a result, it will lead to rise in monetizing a click.
This big change has been done worldwide and has affected all languages. The layout has been tested by Google and designed to offer relevant results for users. Although, it is hard to figure out the impact with precision across each company, but it is important to be cautious to changes in your account.